The CPI is more commonly used as a gauge of inflation than the GDP deflator is because
a. the CPI is easier to measure.
b. the CPI is calculated more often than the GDP deflator is.
c. the CPI better reflects the goods and services bought by consumers.
d. the GDP deflator cannot be used to gauge inflation.
c
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The Bank of Arugula has $9 million in deposits and $900,000 in reserves. If the required reserve ratio is 10%, excess reserves are equal to
A. $180,000. B. $90,000. C. $81,000. D. zero.
When local police and fire departments buy new cars for their operations, these are counted as part of ________.
A. net exports B. government purchases C. consumption D. investment
Monopolistic competition is similar to
a. perfect competition because the firms face downward-sloping demand curves and can earn only a normal profit in the long run b. pure monopoly because the firms face downward-sloping demand curves and can earn only a normal profit in the long run c. perfect competition because the firms face downward-sloping demand curves and similar to pure monopoly in that the firms can earn only a normal profit in the long run d. pure monopoly because the firms face downward-sloping demand curves and similar to perfect competition in that the firms can earn only a normal profit in the long run e. pure monopoly because the firms face downward-sloping demand curves and can earn an economic profit in the long run
Which of the following is a major impact of offshoring?
a. Elimination of domestic jobs b. Elimination of jobs in foreign countries c. Creation of jobs in the domestic country d. An increase in the cost of production of domestic firms e. A reduction in the cost of production of foreign firms