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.
C
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The basic idea behind the 1996 and 1997 welfare changes was to make welfare an entitlement
Indicate whether the statement is true or false
Bob purchases a book, and his consumer surplus is $3 . If Bob is willing to pay $8 for the book, then the price of the book must be
a. $3. b. $8. c. $5. d. $11.
When buying a used car from a dealer, showing up in cheap clothing and ungroomed is an example of:
A. statistical discrimination. B. signaling. C. screening. D. building a reputation.
Below the full-employment level of output, per-unit production costs rise and firms must receive higher product prices for them to be profitable.
Answer the following statement true (T) or false (F)