The difference between the real interest rate and the nominal interest rate gives the inflation rate in an economy in a particular year
a. True
b. False
Indicate whether the statement is true or false
True
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You like bundle A better than bundle B, and bundle C is an average of bundles A and B. Which of the following is correct if your tastes satisfy our usual assumptions?
A. Bundle C is at least as good as bundle B. B. Bundle A is at least as good as bundle C. C. Both (a) and (b). D. None of the above. E. There is not enough information to tell.
According to the Bureau of Economic Analysis (BEA), personal consumption expenditures grew at an annualized rate of 0.5% in August 2012, and this increase in spending was accompanied by income growth
If you were building a macroeconomic model that explores the effect of the growth in income on the increase in consumer spending, the growth in income would be an ________ variable and the increase in consumer spending would be an ________ variable. A) endogenous; endogenous B) endogenous; exogenous C) exogenous; exogenous D) exogenous; endogenous
A competitive equilibrium fails to be a Pareto Optimum with a distorting tax because
A) the consumer's budget constraint has an additional kink. B) the firm is no longer maximizing profits. C) the government wastes its revenue. D) the consumer faces a different effective wage than the firm.
Increases in the prices of services due to improvement in its quality indicate a(n) _____
a. decline in productivity. b. decline in real GDP. c. increase in output. d. decline in manufacturing output. e. increase in technological progress.