The price system works in an economy on a day-to-day basis to match the desires of consumers with the output from producers.
Answer the following statement true (T) or false (F)
True
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Large differences in inflation rates among countries are almost always the result of large differences in
A) productivity. B) real income growth. C) the growth rates of real money demand. D) the growth rates of nominal money supplies.
Pauline is offered a Job in Minneapolis that pays $80,000 . She is offered a similar job in Louisville that pays $71,200 . Which pair of CPIs would ensure that the two salaries have the same purchasing power?
a. 90 in Minneapolis and 83 in Louisville b. 90 in Minneapolis and 72 in Louisville c. 100 in Minneapolis and 89 in Louisville d. 105 in Minneapolis and 90 in Louisville
The economic problem is essentially one of deciding how to make the best use of
A. limited resources to satisfy limited wants. B. unlimited resources to satisfy limited wants. C. limited resources to satisfy unlimited wants. D. unlimited resources to satisfy unlimited wants.
A decrease in business taxes will tend to:
a. Increase aggregate demand but not change aggregate supply b. Increase aggregate demand and increase aggregate supply c. Decrease aggregate supply and decrease aggregate demand d. Increase aggregate supply but not change aggregate demand