Assume you mistakenly buried a $100 bill in a time capsule in 1970 and dug it up again in 20What would be its real purchasing power ?
A. 122
B. 100
C. 88
D. 42
E. 17
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Which of the following was NOT true during the Great Depression?
A. investment as a share of GDP was below 3 percent
B. unemployment averaged about 18.8 percent
C. prices dropped by one-fourth
D. output fell by nearly 30 percent
E. both B) and C)
The level of GDP that corresponds to full employment in the labor market is called
A. potential GDP
B. real GDP
C. nominal GDP
D. natural GDP
E. GDP per capita
Most economists prior to Keynes thought that
A. unemployment could be eliminated by active fiscal policies
B. the economy always adjusted rapidly to full employment
C. the economy always adjusted to a natural rate of inflation
D. monetary policy could be employed to eliminate the business cycle
E. government intervention was needed to avoid persistent unemployment
The neoclassical growth model predicts absolute convergence for countries with the
A. same technology, savings rate, and population growth
B. same technology and savings rate, but different rates of population growth
C. same technology and population growth, but different savings rates
D. same population growth and savings rate, but different levels of technology
E. same population growth, but different levels of technology or savings rates
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