In the base year:
A. nominal and real GDP are equal by definition.
B. nominal GDP is always larger than real GDP because prices are held constant.
C. real GDP is always larger than nominal GDP because prices are held constant.
D. real GDP will only be larger than nominal GDP if prices increased in the base year.
A. nominal and real GDP are equal by definition.
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Which of the following would be considered unemployed as part of normal labor market turnover?
i. Juliet, who was fired when the company where she worked went bankrupt in a recession ii. Hannah, who quit her job to find one that better suited her skills iii. Charlotte, who started looking for a job upon graduation from high school A) ii and iii B) i and ii C) i, ii and iii D) i and iii E) iii only
A financial bubble starts to inflate when:
A. investors become irrationally pessimistic that an asset needs to be sold immediately. B. investors become irrationally optimistic that an asset's price will continue to rise. C. inflation begins to accelerate, and monetary and fiscal policy are ineffective at slowing its growth. D. a good experiences an unexplained rise in demand increasing its price.