The typical bundle of goods and services on which the GDP deflator is based
a. is narrower than the one used to calculate the CPI.
b. is updated once every decade.
c. is the same as the one used to calculate the CPI.
d. is updated every year.
D
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“Common stock” is the type only sold to small investors.
Answer the following statement true (T) or false (F)
An individual bank can lend out at most its:
a. actual reserves. b. fractional reserves. c. legal reserves. d. checkable deposits. e. excess reserves.
Gross Domestic Product in 2013 was almost five times larger than it was in 1960 but it is important to note that
a. none of the growth represented more output. b. measurement of output omitted any effect of inflation. c. the population grew substantially over the same time period. d. graphs of output were unable to display such growth.
The economy is in long-run equilibrium when Senator Soldout argues that the Fed should do more to fight unemployment. He argues that if the Fed increased the money supply faster, more workers would find jobs. The Senator's argument
a. is completely correct. b. is completely wrong. c. is true for the short run but not the long run. d. is true for the long run but not the short run.