If there were four firms in an industry each with a 25% market share, what would the Herfindahl-Hirschman Index equal?

Since real GDP is adjusted for inflation and nominal GDP is not, nominal GDP must always be higher than real GDP. Do you agree or disagree? Why?

What will be an ideal response?

Which of the following is a problem associated with an active policy such as a stimulus package?

a. Increase in the unemployment rate b. Increase in inflationary pressure c. Increase in the market interest rate d. Decrease in the market interest rate e. Decrease in money demand