Refer to the diagram. Which of the following statements is correct?
A. The price index is greater than 100 for every year shown on the graph.
B. Nominal GDP must be deflated in each year prior to 2000 to determine real GDP.
C. Real GDP has grown in this economy, but nominal GDP has not.
D. Nominal GDP must be deflated in each year since 2000 to determine real GDP.
D. Nominal GDP must be deflated in each year since 2000 to determine real GDP.
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Advertising for Milk and Beef is usually done by
A) interest groups that represent the whole industry. B) a single firm in the market. C) a small set of firms in a market. D) It is not done because it doesn't pay to advertise homogeneous products.
In the prisoner's dilemma game:
A. neither player has a dominant strategy. B. both players have a dominant strategy. C. only one player will ever have a dominant strategy. D. All of these may be true in a prisoner's dilemma game.
As the price of milk increases, what would reasonably be expected to happen to the equilibrium price and equilibrium quantity of cereal? (Milk and cereal are complements.)
A) Equilibrium price would increase and equilibrium quantity would decrease. B) Equilibrium price and quantity would both decrease. C) Equilibrium price would decrease and equilibrium quantity would increase. D) Equilibrium price and quantity would both increase.
A major drawback of the Keynesian approach to macroeconomic equilibrium is the assumption that the supply of goods and services in the economy always adjusts to aggregate expenditures
a. True b. False Indicate whether the statement is true or false