If prices have decreased since the base period, then
A) real GDP is smaller than nominal GDP.
B) real GDP is larger than nominal GDP.
C) real GDP is equal to nominal GDP.
D) there is no way to adjust nominal GDP so that it equals real GDP.
E) real GDP can no longer be compared to nominal GDP.
B
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Suppose the demand for peaches from South Carolina is perfectly elastic. If the supply curve is upward sloping and a tax is imposed on peaches from South Carolina, then
A) peach sellers pay all of the tax. B) peach buyers pay all of the tax. C) peach buyers and sellers evenly split the tax. D) the government does not collect any revenue from the tax. E) the tax does not change the equilibrium quantity of peaches.
In the market for factors of production, households earn income by supplying factors of production to firms
Indicate whether the statement is true or false
With greater deficit spending, ceteris paribus,
A. There are greater leakages. B. Aggregate spending should fall. C. Any inflationary gap will become larger. D. There is inadequate information to tell what happens to aggregate spending.
Those who have more faith in self-correcting forces of the economy subscribe to the passive approach of economy
Indicate whether the statement is true or false