If nominal GDP increases by 4 percent, then
What will be an ideal response?
it is possible that all of the increase was caused by an increase in the price level
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Both classicals and Keynesians agree that policymakers
A) can exploit the Phillips curve in the short run. B) cannot exploit the Phillips curve in the short run. C) can keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation. D) cannot keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation.
Luigi owns and operates a small restaurant. The income he receives from the restaurant is classified as
a. saving b. proprietor's income c. wages and salaries d. rental income e. dividends
Which of the following is not true about utility? a. Utility varies from individual to individual
b. Marginal utility tends to decline, the more of a good or service is consumed. c. When marginal utility is at its maximum, total utility is zero. d. All of the above are true about utility.
For a previously-legal good, criminalization will cause
A. demand to become less elastic. B. supply to become more elastic. C. price to fall, unambiguously. D. supply to increase.