In the event of deflation, or negative inflation, then
a. real GDP is always lower than nominal GDP.
b. real GDP is always lower than nominal GDP after the base year.
c. real GDP is always lower than nominal GDP.
d. real GDP is always higher than nominal GDP before the base year.
e. None of the above
E
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If income rises, most consumers will increase the quantity demanded of an inferior good
a. True b. False Indicate whether the statement is true or false
In the open-economy macroeconomic model, as the exchange rate rises,
a. desired net exports fall, so the quantity of dollars supplied rise. b. desired net exports fall, so the quantity of dollars demanded falls. c. desired net exports rise ,so the quantity of dollars supplied falls. d. desired net exports rise, so the quantity of dollars demanded rises.
Exhibit 6A-5 Consumer Equilibrium
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Given the budget lines and indifference curves shown in Exhibit 6A-5, if the budget line shifts from AB to AC, then the:
A. price of good Y has increased. B. price of good X has decreased. C. price of good X has increased. D. consumer's budget has decreased.
The pizza delivery industry is monopolistically competitive. Little Joe's Pizzeria raises its prices by 10%, but all the other pizzerias in town keep their prices the same. Which of the following is most likely to occur?
A. Little Joe's Pizzeria's profits will increase. B. The number of customers served by Little Joe's Pizzeria will increase. C. Little Joe's Pizzeria will not be able to sell any pizzas, because it was the only firm to raise its price. D. Little Joe's Pizzeria will lose some of its customers.