Author Question: If you have 1,000 of money in the bank and the price level rises by 5 percent, your A) money is ... (Read 104 times)

rmenurse · **on:** Jun 29, 2018

If you have 1,000 of money in the bank and the price level rises by 5 percent, your

A) money is worth more in terms of what it can purchase.
B) money is worth less in terms of what it can purchase.
C) money is worth the same in terms of what it can purchase.
D) purchasing power has increased.

Question 2

If we compare the U.S. GDP and the Chinese GDP

A) real GDP per person is about the same in the two countries.
B) U.S. real GDP per person is less than China's real GDP per person once we adjust for currency differences.
C) China's real GDP per person is less than real GDP per person in the United States.
D) real U.S. GDP per person was much larger than China's real GDP per person when purchasing power parity prices are used but is less than China's real GDP per person when exchange rate prices are used.