In the mid-1830s, the U.S. entered an inflationary period that culminated in the depression of 1839-1843 . Contemporary economic historians attribute this economic downturn to
a. the demise of the Second Bank of the U.S. in 1832.
b. over-issue of gold coins by the U.S. Mint.
c. over-expansion by the manufacturing sector.
d. external forces, including large inflows of specie from Mexico and Europe.
d. external forces, including large inflows of specie from Mexico and Europe.
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The CARD Act, which tells credit card holders how long it will take to pay off their debt if they only make minimum payments, and how much they need to pay in order to pay off the debt in three years, is an example of:
A. disclosing information in more usable ways. B. choice architecture that nudges people toward better decisions. C. how the presentation of information can affect people's choices. D. All of these statements are true.
______ occurs when the firm produces below the level where average total cost is minimized.
a. Monopolistic capacity b. Excess capacity c. Total capacity d. Necessary capacity
Assume there are only two goods in the economy, apples and bananas. In 2018, 2,000 apples were sold at $1 each and 8,000 bananas at $0.60 each. In 2019, the price of apples rose to $1.5 and the quantity rose to 2,200; the price of bananas rose to $0.80 and the quantity sold rose to 8,500. Calculate the GDP deflator in 2019 using 2018 as the base year.
What will be an ideal response?
One way to measure asset inflation is to:
A. multiply the GDP deflator times real net worth; if it increases, there is asset inflation. B. divide GDP by nominal net worth; if it increases, there is asset inflation. C. multiply the GDP deflator times nominal net worth; if it increases, there is asset inflation. D. divide nominal net worth by GDP; if it increases, there is asset inflation.