If incomes rose proportionately with prices, then in the absence of taxes
a) money would cease to be a veil
b) real GDP would increase
c) everyone would be worse off
d) prices would have no effect on output or well-being
e) resources would be over allocated to the present at the expense of future generations
d) prices would have no effect on output or well-being
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Jim has the following assets and liabilities:Credit Card balance$2,000Cash$500Government bonds$2,000Checking$750Car loan balance$5,000Car$15,000Which of the following actions would increase Jim's money demand by $200?
A. Jim pays $200 cash for a new lamp. B. Jim gets a $200 cash advance on his credit card and puts the proceeds in his checking account. C. Jim writes a check for $200 to pay down his credit card balance. D. Jim writes a check for $200 to pay down her car loan balance.
Discounted tickets for children into events is what type of price discrimination?
A. First-degree price discrimination. B. Second-degree price discrimination. C. Third-degree price discrimination. D. It is not price discrimination.
Which of the following is a reason why the Consumer Price Index (CPI) is not calculated as a simple average of all prices?
a. Some goods experience large price changes and the CPI would be too variable if computed by a simple average. b. Goods differ in their importance in the average consumer's budget. c. Some goods never experience price changes and the CPI would not be variable enough if computed as a simple average. d. It would be difficult to compute a price index using a simple average of all prices. e. Actually, the CPI is a simple average of all prices.
Which of the following assumptions is held by both the classical view and the new classical view?
A) rational expectations B) flexible wages and prices C) flexible wages and sticky prices D) adaptive expectations E) a and b