Which of the following situations will result from a fall in the price level in the economy?
a. Consumption expenditure increases because of increase in purchasing power
b. U.S. exports become less affordable to people in foreign countries
c. Real GDP demanded decreases
d. Government expenditure decreases at each income level
a
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People add to their stock of human capital
A) by being lucky. B) by currying favor with powerful people. C) by going to school. D) by practicing their skills. E) in all of the above ways.
Which of the following accurately measures the welfare or happiness of society?
A) Nominal GDP B) Real GDP C) Both Nominal GDP and Real GDP D) None of the above.
Suppose that when the price of pickles decreases, Teddy increases his purchase of ketchup. To Teddy,
A) pickles and ketchup and substitutes. B) pickles and ketchup are normal goods. C) pickles and ketchup are complements. D) pickles are a normal good and ketchup is an inferior good.
Movements along a money demand curve reflect the effects of changes in the _____
Fill in the blank(s) with the appropriate word(s).