For two goods, X and Y, to be classified as substitutes, it must be the case that:
A. X and Y are identical.
B. when the price of X rises, the demand for Y increases.
C. when the price of X rises, the demand for Y decreases.
D. consumers tend to purchase both items together.
Answer: B
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Refer to the scenario above. What is the nominal GDP of the economy in 2013?
A) $55,000 B) $50,400 C) $47,000 D) $50,000
One reason that international trade is restricted is that
A) the individual gain to parties who benefit from the protection is much larger than the individual loss to parties who lose. B) the government completely pays the losers from international trade for their losses. C) protectionism benefits consumers. D) the government cannot measure the cost of protectionism.
The money multiplier is _____ when the reserve ratio is 12.5 percent
Fill in the blank(s) with correct word
Our health care costs are about _____ percent of our GDP.
A. 5 B. 11 C. 17 D. 20