1. Net Domestic Product is given by: a. GNP – Depreciation. b. Inflation – Depreciation. c....

1. Net Domestic Product is given by:

a. GNP – Depreciation.

b. Inflation – Depreciation.

c. Real GDP – Depreciation.

d. GDP – Depreciation.

2. CPI suffers from:

a. All the other options are true.

b. Quality Bias

c. Substitution Bias

d. New Product Bias

3. The Fischer Equation is given by:

a. Inflation Rate = Nominal Interest Rate + Real Interest Rate.

b. Nominal Interest Rate = Real Interest Rate – Inflation Rate

c. Real Interest Rate + GDP growth rate = Nominal Interest Rate

d. Real Interest Rate + Inflation Rate = Nominal Interest Rate

4. The natural rate of unemployment in the economy will ___________ if LRAS shifts to the left.

a. rise

b. become cyclical

c. remain unchanged

d. fall

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

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