If production remains the same and all prices double, then real GDP:
A. and nominal GDP are both constant.
B. is constant and nominal GDP is reduced by half.
C. is constant and nominal GDP doubles.
D. doubles and nominal GDP is constant.
Ans: C. is constant and nominal GDP doubles.
Economics
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If the minimum wage is set above the equilibrium wage, a supply and demand diagram of the low-skilled labor market will show unemployment as
A) a vertical distance. B) a horizontal distance. C) the area of a rectangle. D) the area of a triangle.
Economics
If Greece chose to abandon the euro and the Greek government decided to exchange euro bank deposits for drachmas, the affected bank depositors would suffer losses if the
A) euro then appreciated. B) euro then depreciated. C) drachma then appreciated. D) drachma then depreciated.
Economics