If real GDP and the GDP deflator both rise, then it must be that nominal GDP rose
a. True
b. False
Indicate whether the statement is true or false
True
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According to the above figure for a gasoline market, what happens when the price per gallon of gasoline jumps from $1 to $4?
A) A gasoline surplus is replaced by a gas shortage. B) The market moves from a shortage of 40 million gallons/day to a surplus of 50 million gallons/day. C) The market shortage is replaced by market equilibrium. D) A surplus of 40 million gallons/day results.
In order for an economy to grow, factors of production must ______.
a. remain stable b. be scaled back c. undergo change d. be publicly owned
Sulfur Dioxide Discharged (Tons)Firm AFirm B10$10,000$12,000911,00017,000813,00022,000716,00026,000620,00033,000
Table 9.8 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If the two firms were to voluntarily trade pollution permits, how many permits would be swapped?
A. 0 B. 1 C. 2 D. 3
Everything else fundamentally remaining unchanged, the monetary approach predicts that a 5 percent cut in the money supply by the Fed will result in
A. an increase in foreign investments by the Americans. B. an appreciation of the U.S. dollar vis-à-vis other currencies. C. inflation in the U.S. economy. D. a decrease in the market rate of interest in the United States.