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7.Assume nominal GDP increased by 4.2% in the U.S. but by only 3.4% in Germany. We can definitely conclude thatA) the standard of living of the people in the U.S. went up more than the standard of living of the people in GermanyB) real economic growth in the U.S. was higher than in GermanyC) inflation in the U.S. was 0.8% higher than in GermanyD) productivity growth in the U.S. was higher than in GermanyE) none of the above Ans: E2
Full file at Difficulty: Easy8. Assume you deplete your savings to buy a new sofa and some government bonds and then take a vacation in a foreign country. Which of the following is true?Difficulty: Easy9. If gross investment were zero, which of the following would be true?Difficulty: Easy10. Depreciation isDifficulty: Medium11. If we counted the value of autoworkers' salaries, wheels, tires, steel, body parts, and final car sales in calculating GDP, then we would beA) understating GDP by overlooking car dealers' profitsB) ignoring the contribution of capital to outputC) overstating GDP through double countingD) using the value-added technique for calculating GDPE) calculating GDP correctly only if we excluded any imported cars Ans: C3
Full file at Difficulty: Medium12. The difference between gross investment and net investment isDifficulty: Easy