If the growth rate of real GDP and the rate of inflation in an economy are 2% and 1% respectively, the growth rate of nominal GDP in the economy must be:

The used car market without warranties suffers from

A) perfect competition. B) oligopoly. C) adverse selection and moral hazard. D) excessive signaling.

When Germany increased fiscal spending and raised interest rates in the early 1990s,

A) economic growth increased throughout Europe. B) other countries were forced to raise interest rates to stay in the ERM. C) it was unsuccessful in supporting East Germany. D) it forced other countries to devalue their currencies.