When there is an increase in the wage rate there will be
a. both a substitution effect and an income effect.
b. only a substitution effect.
c. only an income effect.
d. either a substitution effect or an income effect.
a. both a substitution effect and an income effect.
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If real GDP for a given year is $2400 billion and nominal GDP is $2400,
A) this year is the base year for the GDP deflator. B) the GDP deflator for this year is 1.25. C) the GDP deflator for this year is 0.8. D) the GDP deflator for this year is 1.10.
To encourage formation of small businesses, the government could provide subsidies; these subsidies
a. would be included in GDP because they are part of government purchases. b. would be included in GDP because they are part of investment expenditures. c. would not be included in GDP because they are transfer payments. d. would not be included in GDP because the government raises taxes to pay for them.
When the value of one currency increases relative to the value of another currency, it has experienced:
A. exchange rate appreciation. B. interest rate depreciation. C. net capital inflow. D. exchange rate depreciation.
Authorization to start a business issued by the local government is called a/an
A. liability B.IPO C. royalty D. business license