The primary value of real GDP is its ability to measure year to year changes in
What will be an ideal response?
real output
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Your starting salary is $35,000 per year. After one year, you are given a raise that increases your nominal salary. Which of the following salaries would you prefer the most?
A) a $36,000 salary with a CPI of 103.0 B) a $39,000 salary with a CPI of 110.0 C) a $39,000 salary with a CPI of 109.0 D) a $37,000 salary with a CPI of 106.0 E) a $38,000 salary with a CPI of 104.0
If the public believes the commitment to a nominal anchor to be credible, the effect of a positive aggregate demand shock is for ________
A) short-run aggregate supply to shift up B) short-run aggregate supply to be unaffected C) short-run aggregate supply to shift down D) inflation, but not economic activity, to increase
Which of the following is a key characteristic of economic freedom?
a. institutions and policies supportive of voluntary exchange b. freedom to compete c. protection of people and their property from aggressors d. all of the above
What fiscal policies did the government implement in response to the 2008-2009 recession? Can we be certain that these policies were effective? Explain