A price index creates a measure of how many dollars it would take to maintain a constant purchasing power over time
a. True
b. False
Indicate whether the statement is true or false
True
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Points on the IS curve satisfy ________ market equilibrium
A) money B) goods C) stock D) bond
We observe that the price per ounce of milk in a quart container is higher than the price per ounce in a gallon container. What is the likely reason for this?
A. The higher costs of quart containers B. The higher costs of production of milk in smaller quantities. C. Higher transportation costs for smaller container sizes. D. The marginal utility of milk is higher in smaller containers than it is in larger containers.
If there were no individual mandate requiring most individuals to purchase health insurance:
a. individuals in good health have no incentive to purchase health insurance b. there would be an adverse selection of unhealthy people purchasing health insurance c. both of the above d. neither of the above
Describe the impact of contractionary fiscal policy (such as a decrease in government spending) upon Real GDP in both a closed economy and an open economy. In which type of economy would the change in Real GDP be greater?