When news reports state that inflation has increased, they could be referring to a change in the GDP deflator.
Answer the following statement true (T) or false (F)
True
The GDP deflator is the broadest measure of prices in an economy, and inflation is often caused by ballooning prices.
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The average total cost curve is U-shaped. At the quantity of output where average total cost is at its minimum, is the marginal cost curve above the average total cost curve, below the average total cost curve,
or intersecting the average total cost curve?
A decrease in the market interest rate, other things constant, will result in: a. a rightward shift of the money demand curve
b. a leftward shift of the money demand curve. c. an increase in the slope of the money demand curve. d. a movement up along the money demand curve. e. a movement down along the money demand curve.
Given the strict quantity theory of money, if the quantity of money were decreased by 50 percent, prices would
What will be an ideal response?
If MUx/Px > MUy/Py, then
A. X is more expensive than Y. B. Y is more expensive than X. C. spending a dollar less on X and a dollar more on Y increases utility. D. spending a dollar less on Y and a dollar more on X increases utility.