If the price level is falling, all of the following are true except
A. Businesses are reluctant to borrow money.
B. Purchasing power increases.
C. Lenders are better off.
D. Borrowers are not affected.
Answer: D
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The value of a country's final goods and services after adjusting for changes due to inflation is called its _____
a. real GDP b. nominal GDP c. disposable income d. net national product e. full employment output
Marginal physical product measures the increase in total output that results from a one-unit increase in an input
a. True b. False Indicate whether the statement is true or false
When money wages rise, the most significant effect on the aggregate supply curve is that it
a. shifts outward. b. shifts inward. c. becomes flatter. d. becomes steeper.
The Board of Governors of the Federal Reserve is part of a larger policy-making group called the
A) Senate Banking Committee. B) Federal Deposit Insurance Corporation. C) American Banking Association. D) Federal Open Market Committee.