The Balassa-Samuelson Forecast Can Be Used to Predict Changes in _____

question 33

Multiple Choice

The Balassa-Samuelson forecast can be used to predict changes in _____ over time and, therefore, can be used to predict ______ by adding in inflation changes.

• A) income levels; real GDP growth rates
• B) expectations; technology improvements
• C) real GDP; unemployment rates
• D) real exchange rates; nominal exchange rates

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Definitions:

Argument

Refers to the combination of a person’s claim and the reason or reasons a person presents in support of that claim.

Truth Table

A mathematical table used in logic to determine the validity of various logical expressions by listing all possible outcomes.

Argument

An exchange of diverging or opposite views, typically a heated or angry one, or a reason or set of reasons given with the aim of persuading others that an action or idea is right or wrong.

Valid

Describes an argument or inference such that the truth of the premises entails or implies that conclusion must be true; in other words, it is impossible for the conclusion to be false if all of the premises are true.