If a particular measure of real GDP consistently underestimates growth in real GDP, then the rate of inflation as measured by the GDP deflator
A) will be biased upward.
B) will be biased downward.
C) will be unbiased.
D) cannot be calculated.
A
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Maryanne expects to work for another 30 years and expects to live another 10 years after she retires. If Maryanne completely smooths consumption over her lifetime, for every $1,000 increase in wealth, she will use ________ for consumption each year
A) $10.00 B) $25.00 C) $100 D) $333
A policy of marginal-cost pricing will ensure that many regulated industries will lose money
a. True b. False Indicate whether the statement is true or false
At higher interest rates, fewer people or firms will want to borrow. At lower interest rates, fewer people or firms will want to save
a. True b. False Indicate whether the statement is true or false