The income from a financial investment in Country P by a citizen of Country Q is most likely included in:
A. Country Ps GDP but not its GNP.
B. Country Qs GNP and GDP
Country Ps GDP and GDP
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If a countrys inflation rate is below the central banks target rate, the central bank is most likely to:
A. Sell government securities.
B. Increase the reserve requirement.
C. Decrease the overnight lending rate.
Real GDP is best described as the value of:
A. Current output measured at current prices.
B. Current output measured at base-year prices.
C. base-year output measured at current prices.
Both monetary and fiscal policy are used to:
A. Balance the budget.
B. Achieve economic targets.
C. Redistribute income and wealth.
In short-run equilibrium, if aggregate demand is increasing faster than long-run aggregate supply:
A. The price level is likely to increase.
B. Downward pressure on wages should ensue.
C. Supply will increase to meet the additional demand.
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