If the price level rises to $120 trillion, what is the best estimate for RGDP demanded?
a. $12 trillion
b. $14 trillion
c. $16 trillion
d. $18 trillion
b. $14 trillion
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All of the following encourage increases in technological progress EXCEPT
A) closed economies. B) larger markets through free trade. C) the possibility of monopoly profits. D) the ability to patent a new invention.
A stable regular relation between income and the money stock as the medium of exchange presumes that
A) no interest is paid on the medium of exchange. B) as interest rates increase the amount of money held increases. C) as interest rates increase the amount of the medium of exchange held decreases. D) A and B.
In order to achieve a high rating on the Economic Freedom of the World index, a country must
a. provide for the even-handed protection of private property and rely primarily on open markets and voluntary exchange to coordinate economic activity. b. use central planning to direct investment and resolve the three basic economic problems of what, how, and for whom goods will be produced. c. protect domestic businesses from foreign rivals who generally provide shoddy products. d. protect domestic workers from businesses that are unwilling to pay high wages and provide quality working conditions.
Retired individuals:
a. Are always harmed by inflation. b. Are almost always helped by inflation. c. Are helped by inflation when it is unexpected. d. Are harmed by inflation when it is expected. e. Could be helped by inflation if their spending patterns are not like the average consumer.