Which is the most accurate statement about the GDP deflator and the consumer price index?
a. The GDP deflator compares the price of a fixed basket of goods and services to the price of the basket in the base year, whereas the consumer price index compares the price of currently produced goods and services to the price of the same goods and services in the base year.
b. The consumer price index compares the price of a fixed basket of goods and services to the price of the basket in the base year, whereas the GDP deflator compares the price of currently produced goods and services to the price of the same goods and services in the base year.
c. Both the GDP deflator and the consumer price index compare the price of a fixed basket of goods and services to the price of the basket in the base year.
d. Both the GDP deflator and the consumer price index compare the price of currently produced goods and services to the price of the same goods and services in the base year.
b
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The institution that is responsible for maintaining international monetary stability is the:
A. International Monetary Fund. B. World Bank. C. United Nations. D. International Reserve Bank.
Economists disagree as to whether
a. the stock price of a company should reflect the company's expected profitability. b. the basic tools of finance reflect valid ideas. c. stock prices reflect rational estimates of a company's true worth. d. there is any relationship between stock market fluctuations and fluctuations in the economy more broadly.
At the new equilibrium quantity of labor, the before-tax wage rate _________ and the after-tax wage rate __________.
Fill in the blank(s) with the appropriate word(s).
By requiring car producers to install emission control devices on cars, the government forces these producers to internalize some of the external costs of auto pollution. This will lead to the equilibrium price of cars:
A. increasing and the quantity increasing. B. decreasing and the quantity increasing. C. decreasing and the quantity decreasing. D. increasing and the quantity decreasing.