Compared to a country with an MPS of 0.05, a country with an MPS of 0.2 would have to change government expenditures by ________ as much to have the same impact on real GDP.
A. twice
B. three times
C. four times
D. five times
Answer: C
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An expansionary policy does not alter: a. the price level in the short run
b. aggregate demand in the short run. c. inflation in the long run. d. unemployment in the long run.
A rational person can have a negatively-sloped labor supply curve
a. True b. False Indicate whether the statement is true or false
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.
It is impossible to export or import services.
Answer the following statement true (T) or false (F)