For any year beyond the base year, nominal GDP must be greater than real GDP.
Answer the following statement true (T) or false (F)
False
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Some of our security is managed at the local level. Local governments, for example, provide
a. corporate security guards b. police protection to safeguard our communities c. airport accommodations for the air force in times of emergency d. the National Guard e. city or town mall security forces
One of the portfolio choices people must make is whether to deposit idle funds in a bank or purchase government bonds.
a. true b. false
It is possible through trade for a country to consume a combination of goods that lies beyond its production possibilities frontier
Indicate whether the statement is true or false
Suppose that the owner of a local ice cream store, knowing that demand for ice cream is higher when the weather is warmer, always charges a price in cents for a scoop of ice cream that is equal to two times the current outdoor temperature, measured in Fahrenheit (so that if it is 90 degrees outside, the ice cream is $1.80 per scoop). This type of behavior is ________.
A. known as meeting demand B. exactly the type of behavior that Keynes believed most firms exhibit C. inconsistent with the key assumption upon which the basic Keynesian model is built D. free from menu costs