Which of the following could cause nominal GDP to decrease next year, but real GDP to increase?
A) The price level rises and the quantity of final goods and services produced rises.
B) The price level falls and the quantity of final goods and services produced rises.
C) The price level rises and the quantity of final goods and services produced falls.
D) The price level falls and the quantity of final goods and services produced falls.
Answer: B
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If the demand curve for comic books is expressed as Q = 10,000 * p-1, then demand has a unitary elasticity
A) only when p = 10,000. B) only when p = 100. C) always. D) never.
Financial intermediaries in the financial system acquire funds from ________ and lend funds to ________.
a) savers; other savers b) savers; borrowers c) borrowers; savers d) borrowers; other borrowers
If a household has a husband, wife, and two kids, has a standard deduction of $12,600, has itemized deductions of $13,850, and personal exemptions of $16,000 (4*$4,000), then the first ________ of income is federal income tax free.
A. $29,850 B. $41,450 C. $37,100 D. $28,600
When investigating the term structure of interest rates, the bonds compared are
A) identical except for their maturity dates. B) identical in maturity, but differ in terms of liquidity and risk. C) identical in terms of risk, but differ in terms of tax characteristics. D) identical except for their liquidity.