If an increase in the price of peaches reduces the demand for cream, this indicates that peaches and cream are
a. normal goods.
b. inferior goods.
c. complements.
d. substitutes.
C
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Why do policymakers sometimes use policies to limit growth?
What will be an ideal response?
A chain-weighted index
A) calculates changes in prices by using an average of base years from neighboring years to obtain a more accurate measure of real GDP growth. B) is used to understate the rate of inflation. C) is a useful tool for determining which fence to purchase. D) uses neighboring years' data to calculate changes in nominal GDP.
An example of a market subject to adverse selection would be:
A. the used car market. B. the insurance market. C. the financial market. D. All of these statements are true.
Federal spending in nominal dollars (that is, dollars not adjusted for inflation) has grown by what multiple from 1960 to 2014?
a. 10 b. 23 c. 30 d. 38