Real GDP means GDP:
A. valued at prices in a base year.
B. that does not change from year to year.
C. corrected for changes in quality.
D. valued at prices at which goods are actually sold.
Answer: A
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Given the data in Table 6.1, the labor force participation rate of Metropolis is approximately
A) 96 percent. B) 91 percent. C) 83 percent. D) 78 percent.
Globalization has given U.S. consumers a wider variety of gourmet food products from which to choose and has lowered the prices of these products in general
This, in turn, has encouraged consumers to buy more gourmet food items, which has ________ the amount of cooperative surplus for the buyers and sellers of gourmet food products. A) increased B) decreased C) not changed D) reduced to zero
A bank can only make a loan if it has
A) excess reserves. B) a creditworthy customer willing to pay a high interest rate. C) permission from the Federal Reserve. D) reserves equal to its deposits.
Why does a tax change affect aggregate demand?
a. A tax change alters saving by an equal amount. b. A tax change alters imports and net exports. c. A tax change alters government spending by an equal amount. d. A tax change alters disposable income and consumption spending.