A Decrease in Short- Run Real GDP That Leaves Potential

question 33

Multiple Choice

A decrease in short- run real GDP that leaves potential GDP unaffected would be most likely caused by a (an)

• A)decrease in factor- utilization rates.
• B)decrease in interest rates.
• C)increase in factor productivity.
• D)decrease in unemployment rates.
• E)none of the above are likely to cause a reduction in real GDP.

Calculate the remaining time until maturity for strip bonds.

Analyze the impact of different annual rates of return on an investment.

Understand and calculate the effective annual rate (EAR) from nominal and compounded interest rates.

Calculate the required rate of return for future investments based on initial contributions and final goals.

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Definitions:

Exports

Goods or services produced in one country and sold to buyers in another.

Foreign Goods

Products and services that are produced in one country and then sold and consumed in other countries.

Domestic Purchases

Transactions involving goods and services within a country's own borders.

Net Exports

The value of a country's total exports minus its total imports; it's a component of a nation's Gross Domestic Product (GDP).