The three problems with using the consumer price index as a measure of the cost of living are
a. widely acknowledged and easy to solve.
b. widely acknowledged and difficult to solve.
c. nearly unacknowledged and easy to solve.
d. nearly unacknowledged and difficult to solve.
b
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Assume that both the demand curve and the supply curve for MP3 players shift to the right but the demand curve shifts more than the supply curve. As a result
A) the equilibrium price of MP3 players will decrease; the equilibrium quantity may increase or decrease. B) the equilibrium price of MP3 players will increase; the equilibrium quantity may increase or decrease. C) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will increase. D) both the equilibrium price and quantity of MP3 players will increase.
In terms of cash flows, a "balloon" mortgage resembles
A) an amortized loan. B) a Treasury bill. C) a conventional bond. D) a zero-coupon bond.
The Budget of the United States Government is officially submitted by: a. the President to Congress and contains spending and revenue proposals for the upcoming fiscal year. b. Congress to the President and contains spending and revenue proposals for the upcoming fiscal year. c. the President to Congress and contains proposals for tax revenues
d. Congress to the President and contains proposals for tax revenues. e. the President to Congress and is reviewed by the Supreme Court.
Assume the economy is operating below full employment. Which of the following policy actions will allow aggregate spending to increase but will not increase the size of the government in the process?
A. Increase government spending and leave tax rates unchanged. B. Decrease government spending by more than an increase in taxes. C. Decrease tax rates and leave government spending unchanged. D. Increase government spending and taxes by the same amount.