An increase in the price of Irish whiskey imported into the United States will be reflected in
a. both the U.S. GDP deflator and the U.S. CPI.
b. neither the U.S. GDP deflator nor the U.S. CPI.
c. the U.S. GDP deflator, but not the U.S. CPI.
d. the U.S. CPI, but not the U.S. GDP deflator.
d
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Figure 16-3
Figure 16-3 shows the impact of deficit spending and the corresponding economic expansion on the demand curve for money. If the Federal Reserve does not want interest rates to rise, it will
a.
shift the money supply curve to the right by monetizing the deficit.
b.
shift the money supply curve to the left by open market sales of government securities.
c.
maintain the current targets for both M1 and M2 money stocks.
d.
engage in contractionary monetary policy, such as increases in the discount rate.
Marginal revenue equals marginal cost at an output of 20 units. At this output, marginal revenue equals $20, average variable cost equals $15, and average total cost equals $25. In the short run, a profit-maximizing firm will earn a profit of
A. -$200. B. -$100. C. $200. D. $400.
If the prices of both goods increase by 10 percent, the budget line
A. shifts to the right in parallel fashion. B. shifts to the left in parallel fashion. C. is unaffected since only relative price changes matter. D. pivots on the axis of the more expensive good.
Common property resources tend to be
A) overused. B) underused. C) not used at all. D) efficiently used. E) used by the government only.