A program of complete indexation would
A) eliminate most of the costs of inflation.
B) increase the sensitivity of the economy to supply shocks.
C) make the role of expectations negligible.
D) all of these
D
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If two countries are economically identical except that there is significant air and water pollution in one, then the level of GDP:
A. will be the same in both countries. B. will be higher in the country with no pollution. C. will be greater than the level of economic well-being in each country. D. will be higher in the country with pollution.
Which of the following is NOT included in the income approach to calculating GDP?
A) wages B) profits C) interest D) net exports of goods and services E) rent
What is the dominant strategy in the prisoner's dilemma?
A) There is no dominant strategy. B) Each prisoner confesses because this is the rational action to pursue. C) Do nothing in the hope that the other prisoner will also do nothing. D) Do not confess because the other prisoner will most likely confess.
The slope of the short-run aggregate supply curve depends on how sharply: a. the marginal cost of production rises as real GDP expands. b. the average cost of production rises as real GDP expands. c. real GDP increases as the price level rises
d. nominal GDP increases as the price level rises. e. product prices change as the price level rises.