If nominal GDP is 100,000 and real GDP is 80,000, the GDP deflator is 115
Indicate whether the statement is true or false
FALSE
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When people expect their income to be lower in the future, they will be:
A. more inclined to save. B. less inclined to save. C. unaffected in their present choices. D. People only react and change their savings decisions based on recent history.
If tofu is a normal good, an increase in income will
a. decrease the price of tofu b. decrease the production of tofu c. shift the demand curve for tofu to the left d. shift the demand curve for tofu to the right e. decrease the quantity demanded of tofu
Which of the following examples shows a timing problem with monetary policy?
a. Three months after the Fed increases the money supply, political events increase consumer confidence. b. When the Fed decreases the money supply, disinflation gradually takes place. c. After the Fed increases the money supply, foreign firms buy more U.S. exports. d. Two months after the Fed decreases the money supply, economists realize they miscalculated the real output.
A tax on buyers will ________ the price paid by the consumer and ________ the price received by the seller.
A. increase, decrease B. increase, increase C. decrease, decrease D. decrease, increase