The broadest measure of the price level that includes all final goods and services is
A) the consumer price index. B) the producer price index.
C) the wholesale price index. D) the GDP deflator.
D
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According to the aggregate expenditure model, when autonomous expenditure increases, equilibrium expenditure
A) increases by an equal amount. B) does not change because autonomous expenditures has no effect on equilibrium expenditure. C) does not change because only induced expenditures increase equilibrium expenditure. D) increases by a smaller amount. E) increases by a larger amount.
Under the kinked demand model, suppose the firm's demand curve shifts rightward but the price at which the kink occurs remains the same. In this case, the firm:
A) does not change its output. B) increases output. C) decreases output. D) We do not have enough information to answer this question.
Exhibit 12-1 Income for two persons NameIncome Elaine$100,000 Daniel$ 40,000 In Exhibit 12-1, if the income tax system is progressive, then:
A. Elaine and Daniel will face the same tax rate and will have tax bills the same size. B. Elaine and Daniel will face the same tax rate but have tax bills that are different sizes. C. Elaine will face a higher tax rate and will have a larger tax bill than Daniel. D. Elaine will face a lower tax rate and will have a smaller tax bill than Daniel.
A benchmark that banks often use in quoting interest rates to their favored customers is the
A. 3-month Treasury bill rate. B. discount rate. C. prime rate. D. federal funds rate.