The GDP deflator is designed to
What will be an ideal response?
adjust nominal GDP for changes in the price level.
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If we look at the equation for money demand from Irving Fisher, which of the following statements is true?
A. Money demand is not a factor of nominal income B. The price level does not impact money demand C. There isn't an explicit role for the interest rate in the equation D. Velocity does not play any role in the equation
In determining whether and how much of a public good to provide, cost-benefits analysts use the same type of price signals for public goods as are readily available for private goods
a. True b. False Indicate whether the statement is true or false
A drug interdiction program that successfully reduces the supply of illegal drugs in the United States likely will
a. raise the price, reduce the quantity, decrease total revenues, and decrease crime. b. lower the price, increase the quantity, increase total revenues, and increase crime. c. raise the price, increase the quantity, decrease total revenues, and increase crime. d. raise the price, reduce the quantity, increase total revenues, and increase crime.
If the ________ curve shifts from year to year and the ________ curve does not, then the short run Phillips curve would be downward sloping.
A. aggregate supply; aggregate demand B. aggregate demand; aggregate supply C. inflation; employment D. employment; inflation