If nominal GDP rises from $5 billion to $6 billion, when the GDP deflator goes from 100 to 110, real GDP
a. rises
b. falls.
c. stays the same.
d. could either be rising or falling.
a
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A dummy variable is also called
A) an approximate variable. B) a discrete variable. C) a zero-sum variable. D) an improper variable.
Different values are not a reason for disagreement among economists
a. True b. False Indicate whether the statement is true or false
The responsiveness of the quantity demanded of one good to a change in the price of a different good is measured by the:
A. price elasticity of demand. B. cross-price elasticity of demand. C. income elasticity of demand. D. price elasticity of supply.
A tax rebate, which is expected to be offered in this and all future years, will
A) have a small positive effect on consumption and aggregate demand. B) have no effect on consumption and aggregate demand. C) have a significant positive effect on consumption and aggregate demand, with aggregate demand growing by a multiple of the tax rebate. D) increase aggregate supply and aggregate demand.