True/False

1. Productivity growth in the U.S. averaged approximately 3 percent per year between 1947 and 1973; it has averaged approximately 5 percent annually since then.

2. Gross domestic product (GDP) will increase if illegal drugs are made legal.

3. If the price level increases by 2 percent each year, the inflation rate is increasing.

4. The nominal interest rate is equal to the real interest rate minus the anticipated inflation rate.

5. A production possibilities frontier will shift outward if there is an improvement in technology.

6. Productivity is measured as output per unit of productive input.

7. If the consumer price index (CPI) rises over a year from 220 to 230, then the inflation rate is 10 percent.

8. "An increase in the price of a product causes consumers to purchase more of that product" is an example of a positive economic statement.

9. The behavior of the entertainment industry in a city is a microeconomics topic.

10. Whenever there is inflation, increase in nominal gross domestic product (GDP) overstates the growth rate of the economy.