If the GDP deflator in 2009 was 120 compared to a value of 100 during the 2004 base year, this would indicate that
a. the inflation rate during 2009 was 20 percent.
b. the general level of prices during 2009 was 20 percent higher than during 2004.
c. the inflation rate during 2009 was 120 percent.
d. real GDP was 20 percent higher in 2009 than 2004.
B
You might also like to view...
Suppose a monopolist has zero marginal cost but positive recurring fixed costs. Then, if it is efficient to produce, the efficient quantity to produce occurs where demand crosses the horizontal (quantity) axis.
Answer the following statement true (T) or false (F)
In the interest rate parity condition with imperfect substitutes and a risk premium of ?
A) an increased stock of domestic government debt will raise the difference between the expected returns on domestic and foreign currency bonds. B) a decreased stock of domestic government debt will raise the difference between the expected returns on domestic and foreign currency bonds. C) an increased stock of domestic government debt will reduce the difference between the expected returns on domestic and foreign currency bonds. D) an increased stock of domestic government debt will have no effect on the difference between the expected returns on domestic and foreign currency bonds. E) a decreased stock of domestic government debt will have no effect on the difference between the expected returns on domestic and foreign currency bonds.
Refer to Scenario 17.1. The highest level of y* that can be set and still have the high-productivity people choose to meet it is
A) 16. B) 13 1/3. C) 13. D) 8. E) 0.
In a long-run equilibrium where firms have identical costs, it is possible that some firms in a competitive market are making a positive economic profit
a. True b. False Indicate whether the statement is true or false