When adjusting nominal GDP for price changes, it is preferable to use the GDP deflator rather than the consumer price index because the GDP deflator is
a. calculated for a more general market basket of goods than the consumer price index.
b. always less than the consumer price index and, thus, is a more stable index.
c. the sum of the consumer price index and the wholesale price index.
d. the only price index adjusted annually for changes in the quality of products.
A
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Identify the correct statement regarding a fractional reserve banking system.
a. Only a fraction of the banks in the system are allowed to create money b. Only a fraction of the banks in the system have reserves. c. The claims outstanding against the bank are only a fraction of the bank's total reserves. d. Each bank must deposit a fraction of its reserves with the Federal Reserve Bank. e. Bank reserves represent only a fraction of bank deposits.
The slowing rate of population growth in the US after 2000 (from 1.8% per year to 0.9% per year)
A. was a significant reason behind the slowing of economic growth during that period. B. should have been a source of growth but wasn't. C. was entirely countered by an opposite trend in immigration so growth, was nearly zero. D. was more than countered by an opposite trend in immigration so growth, was robust.
Which of the following groups does not belong with the others?
A. Permanent residents B. Green-card recipients C. Temporary immigrants D. Overstaying aliens
A huge 50 percent off sale on golf clubs is advertised for next week. What happens this week in the market for golf clubs?
A) The supply of golf clubs decreases. B) The demand for golf clubs increases. C) The demand for golf clubs decreases. D) The supply of golf clubs increases. E) The demand for and the supply of golf clubs decreases.