Using the information in this chapter, label each of the
following statements true, false or uncertain. Explain briefly.
a. Output growth was negative in advanced as well as
emerging and developing countries in 2009.
b. Stock prices fell between 2007 and 2010 around the world.
c. In the 1960s and early 1970s, the United States had a
higher rate of unemployment than Europe, but today it has a much lower rate of
unemployment.
d. China’s seemingly high growth rate is a myth, a product
solely of misleading official statistics.
e. The high rate of unemployment in Europe started when a
group of major European countries adopted a common currency.
f. The Reserve Bank of Australia lowers interest rates when
it wants to avoid recession and raises interest rates when it wants to slow the
rate of growth in the economy.
g. Output per person is very different in Australia, the
Euro area, the United States and China.
h. The United States federal government has not run a budget
surplus in the last two decades.