Reliable information is
a. costly for consumers, but not for producers
b. costly for producers and consumers
c. freely available
d. costly for producers, but not for consumers
e. not relevant to economic decision making
B
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The production approach to measuring GDP requires ________
A) that the market value of a given good is a reasonable approximation of its economic value B) that all goods and services be added up before assigning a market value C) that no good or service rendered outside the market be included in GDP D) all of the above E) none of the above
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
According to the quantity equation, if M increases by 3 per cent and V increases by 2 per cent, then:
A. real income increases by approximately 5 per cent. B. the price level increases by approximately 5 per cent. C. the nominal interest rate increases by approximately 5 per cent. D. nominal income increases by approximately 5 per cent.
The GDP deflator is
A. the least used index because it is so costly to calculate. B. an index that utilizes a consumer's market basket of goods in calculating the inflation rate. C. the most general indicator of inflation since it measures changes in the prices of all goods and services in the economy. D. an index used to calculate inflation at the wholesale level.