We measure gross domestic product by multiplying the quantities of goods by their prices because it allows us to
A) calculate the total number of units of goods produced in an economy.
B) correct for inflation.
C) directly compare the output of one economy to that of another.
D) express the values of products in a common unit of measurement.
D
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According to The Economist magazine's Big Mac index, one of the most overvalued currencies as of July 2008 was the Norwegian kroner. Which of the following is a likely implication of that fact?
A) That goods and services are more expensive in Norway than in the U.S. B) That the Norwegian currency is going to be undervalued in the near future. C) That the Norwegian currency is likely to appreciate in the near future. D) That the Norwegian government is running a large deficit.
A currency depreciation is usually inflationary
a. True b. False Indicate whether the statement is true or false