Suppose an economy’s real GDP is $125 billion in year 1 and $130 billion in year 2. What is the growth rate of its GDP?
What will be an ideal response?
[($125 ? $130)/($125)] = .0385. In percentage terms, the growth rate is 3.85%.
Economics
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An inflation forecast developed in a Keynesian framework is likely to focus on
A) Federal Reserve policy. B) international gold movements. C) household and business spending decisions. D) the velocity of money.
Economics
During a banking panic, a lender of last resort will
A) purchase banks which are having difficulty but appear sound. B) make loans to solvent but temporality illiquid banks. C) make loans to insolvent but liquid banks. D) make loans to any banks which request them.
Economics