If the Real GDP increases from one year to the next, we could conclude the country experienced:
A. inflation and no change in output.
B. an increase in output and no change in prices.
C. a definite increase in output and may have experienced an increase in prices.
D. definite inflation and may have experienced an increase in output.
C. a definite increase in output and may have experienced an increase in prices.
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In games, strategies are:
A. the outcomes players want to achieve. B. the same for everyone to achieve the same goal. C. the plans of action that players follow to achieve their goals. D. All of these statements are true.
Suppose each of the following news items appears on the evening news. Which one would most likely cause consumption spending to increase?
a. "Layoffs reach record high" b. "Government to increase taxes with the start of the next quarter" c. "Stock market drops 10%" d. "Government to issue tax rebates at the end of next month" e. "Bankruptcies increase 20% over the last six months"
The market price system provides a highly efficient mechanism for disseminating information about relative scarcities of goods, services, labor, and financial capital.
Select whether the statement is true or false. A. True B. False
If national income accountants fail to make an adequate adjustment for increases in the quality of goods and services over time,
a. real GDP will overstate the growth rate of real output. b. the GDP deflator will underestimate inflation. c. the GDP deflator will overestimate inflation. d. real GDP will overstate the growth of real output, and the GDP deflator will understate inflation.