Author Question: When we try to measure real GDP and the price level, if we underestimate the growth in real GDP, we ... (Read 123 times)

Chelseaamend · **on:** Jun 30, 2018

When we try to measure real GDP and the price level, if we underestimate the growth in real GDP, we will

A) always underestimate the rate of inflation.
B) sometimes underestimate the rate of inflation.
C) always overestimate the rate of inflation.
D) sometimes overestimate the rate of inflation.

Question 2

Suppose a country is much richer than the others in the Solow growth model. What happens in the long run?

A) The other countries catch up to the rich one.
B) The rich country grows the fastest.
C) The rich country becomes poorer than the others.
D) Nothing.