Which of the following goods would show up in the Consumer Price Index (CPI) but not in the GDP deflator?
a. aspirin
b. commercial U.S. aircraft
c. Italian designer eyewear
d. cell phones
c. Italian designer eyewear
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Governments in developing countries typically play a larger role in investment spending in their economies than do the governments of industrial countries
a. True b. False Indicate whether the statement is true or false
The price level influences aggregate supply in the___ run but not in the ___run.
Fill in the blank(s) with the appropriate word(s).
An increase in the price level is likely to increase the aggregate amount of output supplied in the short run because
A. wages change in the short-run. B. wages are sticky in the short-run. C. the aggregate supply curve is vertical in the short-run. D. interest rate is high in the short-run.
Stan the news man on Channel 6 reports that the automobile prices were unchanged over the last year, yet automobile sales increased by 5 percent. In the same year, incomes rose by 2.5 percent. Based on this information, you could reasonably conclude that automobiles are
a. substitute goods b. complementary goods c. normal goods d. priced below their equilibrium level e. priced above their equilibrium level