If the interest rate increases, there is a(n)
A) increase in the demand for money.
B) decrease in the demand for money.
C) increase in the quantity of money demanded.
D) decrease in the quantity of money demanded.
D
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In the non-market-clearing model, "involuntary" unemployment results because
A) real wages are too high. B) real wages rise when aggregate demand increases. C) real wages fall when aggregate demand increases. D) wages and prices are sticky.
Suppose that twenty-five years ago a country had nominal GDP of $1,000, a GDP deflator of 200, and a population of 100 . Today it has nominal GDP of $3,000, a GDP deflator of 400, and population of 150 . What happened to the real GDP per person?
a. It more than doubled. b. It increased, but it less than doubled. c. It was unchanged. d. It decreased.