If nominal GDP is constant, then the GDP deflator varies inversely with
A. The CPI.
B. Real GDP.
C. The unemployment rate.
D. COLAs.
Answer: B
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
The increase in the capital stock equals the amount of
A) gross investment. B) depreciation. C) net investment. D) private sector spending.
In the short run, an unexpected increase in prices will
a. reduce resource prices and increase the quantity of goods supplied. b. decrease the productive capacity of firms and decrease the quantity of goods supplied. c. increase the profits of firms, thereby leading them to expand output. d. increase the profits of firms, thereby leading them to reduce output.
Oil producers expect that oil prices next year will be higher than oil prices this year. As a result, oil producers are most likely to
A) place more oil on the market this year, thus shifting the present supply curve of oil rightward. B) hold some oil off the market this year, thus shifting the present supply curve of oil leftward. C) place more oil on the market this year, thus increasing the quantity supplied of oil at lower but not higher prices. D) hold some oil off the market this year, thus decreasing the quantity supplied of oil at lower but not higher prices.