A one-percent increase in the rate of inflation in an economy can increase the value of the GDP deflator of the economy by 10
a. True
b. False
Indicate whether the statement is true or false
False
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A consumer's budget constraint is determined by:
A. a consumer's income. B. a consumer's income and preferences. C. a consumer's income and the prices of the goods she buys. D. a consumer's preferences and the prices of the goods she buys.
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.
To know whether a particular situation for a family, business, or government involves an equilibrium or not, one must
A) understand the circumstances fully. B) determine whether the accounts are in balance. C) determine whether the credits equal the debits. D) determine whether a particular portion of the accounts are in balance or not.
“In all likelihood highly educated workers are the individuals who would earn high incomes even if they did not have as much education.” Evaluate
What will be an ideal response?