If the price level is fixed, then a decrease in government spending will lead to
A. a smaller decrease in nominal GDP than in real GDP.
B. no decrease in either nominal GDP or real GDP.
C. a larger decrease in nominal GDP than in real GDP.
D. a decrease in nominal GDP by the same amount as a decrease in real GDP.
Answer: D
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Specialization is another word for
A) pursuing one's comparative advantage. B) the division of labor. C) producing at a comparably lower opportunity cost. D) all of the above. E) none of the above.
"Price discriminators lose money by being nice to their customers." Is the previous statement correct or incorrect?
What will be an ideal response?
The quantity equation states that the
A) money supply times the velocity of money equals the price level times real output. B) money supply times the price level equals real output divided by the velocity of money. C) money supply divided by the velocity of money equals the price level divided by real output. D) money supply times the price level equals real output times the velocity of money.
The labor force equals the number of people
A) in the working-age population. B) employed. C) unemployed. D) employed plus unemployed.