Question

39. The most important use of GDP is as a measure of the size of the economy which can be used to compare A) True B) False 40. When an economy is in an expansion, A) tends to fall, and overall prices tend to rise. B) and overall prices tend to fall. C) tends to rise, and overall prices tend to fall. D) and overall prices tend to rise 41 You have gone to the bank to borrow money for one year. The nominal annual interest rate is 7.5%. The real rate of interest is 4%. Over the course of the year, overall prices increased by 4%. This rate of inflation hurt the actual rate of inflation was than the anticipated rate of inflation. A) borrower, lower B) borrower; higher C) lender, higher D) lender, lower A) general price level falls. B) general price level increases C) D) interest rate rises general price level becomes negative Scenario: The Employment Rate worker, and two full time workers. rate would fall. force participation rate would fll D) to the A) 4 в) 60%. C)70%

Answer 1

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