If nominal GDP rises from $5 billion to $6 billion, when the GDP deflator goes from 100 to 130, real GDP
a. rises

The natural rate of unemployment is that rate

A) below which the economy can never be. B) corresponding to full-employment. C) corresponding to a constant rate of inflation. D) which is zero.

In the expression Pr(Y = 1 = ?(?0 + ?1X),

A) (?0 + ?1X) plays the role of z in the cumulative standard normal distribution function. B) ?1 cannot be negative since probabilities have to lie between 0 and 1. C) ?0 cannot be negative since probabilities have to lie between 0 and 1. D) min (?0 + ?1X) > 0 since probabilities have to lie between 0 and 1.