Imagine a hypothetical world in which, over the last fifty years, both real GDP and prices have trended downward in most countries. Continuing falls in the level of real GDP and the price level can be explained by
a) neither technological ability nor changes in the money supply can explain continuing falls in the level of real GDP contraction and the price level.
b) continuing losses in technological ability alone.
c) continuing losses in technological ability and continuing decreases in the money supply.
d) continuing decreases in the money supply along.
Ans: c) continuing losses in technological ability and continuing decreases in the money supply.
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The founding document of the European Economic Community, and the document that continues to provide the basis for the European Union is the
A) Treaty of Brussels. B) Delors Report. C) Treaty of Rome. D) Single European Treaty. E) Maastricht Treaty.
In the 1980s, the United States on net ________ foreign nations so that its private firms could absorb through domestic investment ________ goods than what was being left for them by national saving
A) borrowed from, more B) borrowed from, fewer C) lent to, more D) lent to, fewer