Is nominal GDP measured in terms of quantity or in terms of dollars? If dollars, the value of the dollar from what period? Is real GDP measured in terms of quantity or in terms of dollars? If dollars, the value of the dollar from what period?
What will be an ideal response?
Ques. 2Which of the following summarizes the information provided by a Lorenz curve?
A) the Gini coefficient
B) the slope (the rise divided by the run) of the Lorenz curve at a particular point on the curve
C) the income distribution ratio
D) the Lorenz coefficient
Ques. 3When unemployment is below its natural rate, the inflation rate will eventually
A) move to its natural rate.
B) decrease.
C) become equal to the natural rate of unemployment.
D) increase.
Ques. 4An economy that has interactions in trade or finance with other economies is referred to as
A) a closed economy. B) a net foreign investment economy.
C) a trade-balanced economy. D) an open economy.
Ques. 5Refer to Table 25-2. Suppose a transaction changes a bank's balance sheet as indicated in the following T-account, and the required reserve ratio is 10 percent. As a result of the transaction, the bank can make a maximum loan of
A) 0. B) 800. C) 7,200. D) 8,000.
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