The aggregate-demand curve shows the quantity of domestic goods and services that households, firms, the government, and customers abroad want to buy at each price level
a. True
b. False
Indicate whether the statement is true or false
True
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Nominal GDP was $12.1 trillion and real GDP is $11 trillion. The GDP price index is ________
A) 90.1 B) 121.0 C) 1.10 D) 91.0 E) 110.0
The most likely explanation for the high inflation rates that countries like Russia and the Ukraine have suffered is that
A) large inflows of foreign funds increase the money supply, causing inflation. B) without inflation, these countries would be unable to achieve high rates of growth. C) borrowing from the central bank is the most expedient method of funding the government's expenditures. D) the flood of financial innovations has increased liquidity in these nations' economies.
Excess burden calculations typically assume many other distortions.
A. True B. False C. Uncertain
If the central bank did not follow the Taylor principle, an increase in inflation would lead to ________
A) a decrease in the nominal interest rate B) an increase in inflation C) a decrease in aggregate expenditure D) all of the above E) none of the above