What impact will a negative supply shock have on the main measures of economic performance?
A.
Real GDP will increase, inflation will increase, and unemployment will decrease
B.
Real GDP will decrease, inflation will decrease, and unemployment will increase
C.
Real GDP will decrease, inflation will increase, and unemployment will increase
D.
Real GDP will increase, inflation will decrease, and unemployment will decrease
C.
Real GDP will decrease, inflation will increase, and unemployment will increase
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Which of the following occurs in the factor market?
A) households exchange resources for goods and services. B) firms exchange money for resources. C) firms exchange goods and services for resources. D) households exchange money for goods and services.
As an individual earns additional income, the marginal utility of income tends to
A. Decrease. B. Increase. C. Remain constant. D. Shift toward the origin.
According to Adam Smith, a person should never attempt to make at home
A. what it will cost him more to make than to buy. B. everything one person needs to live. C. what one doesn't know how to make. D. any necessity of life.
Find the largest nominal deficit that the government can run without raising the debt-GDP ratio, under each of the following sets of assumptions:(a)Suppose that real GDP is 20,000 and remains constant, nominal GDP is initially 30,000, inflation is 4%, and the debt-GDP ratio is 1.2. (b)Suppose that nominal GDP growth is 5% and outstanding nominal debt is 1500.
What will be an ideal response?