Refer to the data. If year 2 is chosen as the base year, real GDP for year 1 is:
Assume an economy that is producing only one product. Output and price data for a three- year period are as follows. Answer the question on the basis of these data.
A. $25.
B. $100.
C. $20.
D. $80.
D. $80.
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In an economy with no government or foreign sector, which of the following always holds true, ex-post?
A) Consumption equals investment. B) Velocity equals money demand. C) Saving equals consumption. D) Saving equals investment.
In a Malthusian world, what event would improve temporarily the standard of living, as measured by output per capita?
A) a peace keeping mission B) an increase in violent crime C) a new mutation of germs D) a new sewer system
What is true about dominant strategies in the game in Scenario 13.11?
A) R1 and C1 are dominant strategies. B) R1 and C2 are dominant strategies. C) R2 and C1 are dominant strategies. D) R2 and C2 are dominant strategies. E) There are no dominant strategies.
Suppose that the value of the multiplier has increased in recent years. Which of the following could have caused this?
A. Changes in the way the unemployment compensation fund is financed have made it more expensive for firms to lay off workers. B. "Buy America" campaigns launched by many unions have succeeded in reducing the demand for imported goods. C. Consumption has become more sensitive to changes in the interest rate. D. The costs of inventory storage have fallen.