Using the chained-dollar method to calculate real GDP, real GDP is calculated by
A) valuing the current output at last year's real GDP prices.
B) valuing the current output at current year prices.
C) averaging the growth of output from one year to the next when the growth rates are calculated using this year's prices and using last year's prices.
D) either A or C, depending which gives the larger value for real GDP.
E) averaging the value of current output valued using base year prices and current output valued using current year prices.
C
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Some firms practice odd pricing because
A) it is a way to price discriminate. B) it is too difficult for sellers to reeducate buyers into accepting even prices. C) it lowers transactions costs. D) they believe that customers will buy a larger quantity with an odd price.
On a bank's balance sheet, "borrowings" are
A) loans to households. B) loans to businesses. C) nondeposit liabilities. D) U.S. Treasury securities.
The costs of unemployment is (are)
a. foregone output and psychological effects b. foregone output and physical effects c. psychological and physical effects d. foregone output, psychological effects and physical effects e. foregone output
Jane has noticed that she used to pay $2.75 for a hamburger and now she pays $3.0. Which of the following statements is TRUE?
A. The law of supply explains why the price of hamburgers has increased. B. The money price of hamburgers has increased. C. Jane will stop consuming hamburgers. D. The relative price of hamburgers has increased compared to hotdogs.