Which of the following describes an economy's price level?
a. The cost of producing goods and services using domestically owned factors of production
b. The year-to-year change in nominal GDP
c. The year-to-year change in the price of consumer goods
d. The total price of aggregate output
e. The average price of aggregate output
e
You might also like to view...
If the forward exchange rate of the dollar in terms of pounds is less than the spot exchange rate,
A) inflation must be lower in the United States than in Britain. B) inflation must be higher in the United States than in Britain. C) market participants must be expecting the dollar to appreciate against the pound. D) market participants must be expecting the dollar to depreciate against the pound.
A discouraged worker is: a. one who opts to quit work to attend college
b. one who opts to quit searching for work after unsuccessfully seeking employment. c. a part-time worker who would like to work more hours. d. none of the above.
Assume that business investment spending rises, and the increase is funded by greater borrowing in the capital markets. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and monetary base in the context of the Three-Sector-Model?
a. The quantity of real loanable funds rises and monetary base rises. b. The quantity of real loanable funds rises and monetary base falls. c. The quantity of real loanable funds and monetary base fall. d. The quantity of real loanable funds and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Tom is maximizing utility by buying three packs of bubble gum and four packages of Skittles. Given diminishing marginal utility, if the price of Skittles rises, the principle of rational choice tells us that Tom will buy:
A. more Skittles, raising the opportunity cost of not consuming Skittles. B. fewer Skittles, lowering the opportunity cost of not consuming Skittles. C. fewer Skittles, raising the opportunity cost of not consuming Skittles. D. more Skittles, lowering the opportunity cost of not consuming Skittles.