Deflation occurs when
A. the unemployment rate declines.
B. economic activity declines.
C. the economic growth rate declines.
D. there is a decrease in the overall price level.
Answer: D
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Answer the next question using the following budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt. Government SpendingTax RevenuesGDPYear 1$450$425$2,000Year 25004503,000Year 36005004,000Year 46406205,000Year 56805804,800Year 66006205,000As a percentage of GDP, the
A. budget deficit was 3.9% in year 4. B. budget surplus was less than 1% in year 6. C. public debt was 12.5% in year 1. D. public debt was 3% in year 6.
As technology advances,
A) all opportunity costs decrease. B) the PPF shifts outward. C) a country moves toward the midpoint along its PPF and can produce more of both goods. D) all opportunity costs increase. E) the PPF shifts inward because unemployment occurs.
Consider player n in a sequential game. a. If the player can play 3 actions from a single node, how many pure strategies does he have? b. Suppose he can play 3 actions at each of two different nodes. How many pure strategies does he have now? c. Suppose he can play 3 actions at each of three different nodes. How many pure strategies does he have now? d. Suppose he can play 3 actions at each of four different nodes. How many pure strategies does he have now? e. Suppose he can play 3 actions at each of k different nodes. How many pure strategies does he have now?
What will be an ideal response?
Other things the same, which bond would you expect to pay the lowest interest rate?
a. a bond issued by a state with a very good credit rating b. a bond issued by the U.S. government c. a bond issued by a fairly new company doing genetic research d. a bond issued by Nabisco