Problem: True, False or Uncertain Explain whether each of the following statements is true, false, or could go either way, depending on the circumstances. If a question has more than one part, please explain why each part is true, false, or uncertain. Use the analytical tools learned in this course to back up your answers. EXPLANATION DETERMINES THE MARKS a) In the US currently, since the nominal interest rate is virtually zero, the real interest rate has to be negative. b) The full employment level of output is the output level corresponding to an unemployment rate of zero. c) If in a given year the profits of Ghana based Toyota increase; this will contribute to the Ghana GNP for that year. d) The high real GDP growth, high capital spending by firms and high employment growth that the US experienced between 1995 and 2000 can all be explained by a series of permanent positive productivity shocks.
Problem: True, False or Uncertain
Explain whether each of the following statements is true, false, or could go either way, depending on the circumstances. If a question has more than one part, please explain why each part is true, false, or uncertain. Use the analytical tools learned in this course to back up your answers. EXPLANATION DETERMINES THE MARKS
a) In the US currently, since the nominal interest rate is virtually zero, the real interest rate has to be negative.
b) The full employment level of output is the output level corresponding to an
c) If in a given year the profits of Ghana based Toyota increase; this will contribute to the Ghana GNP for that year.
d) The high real
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