The decision by inflation targeters to choose inflation targets ________ zero reflects the concern of monetary policymakers that particularly ________ inflation can have substantial negative effects on real economic activity
A) below; high
B) below; low
C) above; high
D) above; low
D
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GDP excludes most nonmarket transactions. Therefore, GDP tends to ________.
A. underestimate the rate of inflation in the economy B. overestimate the rate of inflation in the economy C. underestimate the amount of production in the economy D. overestimate the amount of production of the economy
The production possibilities frontier is a boundary that separates
A) fair combinations of goods and services that can be consumed from unfair ones. B) the combinations of goods that can be produced from the combinations of services. C) attainable combinations of goods and services that can be produced from unattainable ones. D) affordable production points from unaffordable points. E) equitable combinations of goods and services that can be produced from inequitable ones.
A country's financial account balance decreases if
A) its current account balance increases. B) its income payment inflows on foreign assets decrease. C) its domestic residents working abroad reduce the income they send home to their families. D) foreigners increase their purchases of its existing assets.
If the overall price level increases, it will cause a decrease in the quantity of real goods and services demanded but not a change in aggregate demand curve
a. True b. False Indicate whether the statement is true or false