Real income for a given year would be less than nominal income in that year if:
a. the consumer price index was less than 100 in that year.
b. nominal income in that year was greater than nominal income in the previous year.
c. nominal income in that year was less than nominal income in the previous year.
d. the consumer price index was greater than 100 in that year.
d
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An increase in real interest rates will ________ current consumption for households who are lenders and will ________ current consumption for households who are borrowers
A) increase; decrease B) decrease; increase C) have an unclear effect on; decrease D) decrease; have an unclear effect on
In the United States, most often the ________ changes first, and the ________ follows
A) CPI; PPI B) GDP deflator; CPI C) PPI; CPI D) PCE; CPI
Estimates of the values of which of the following non-market goods or services are included in GDP?
a. the value of unpaid housework b. the value of services provided by major household appliances purchased in a previous period c. the estimated rental value of owner-occupied homes d. All of the above are included in GDP.
An increase in stock prices ________ the size of people's wealth and may ________ their willingness to spend, everything else held constant
A) increases; increase B) increases; decrease C) decreases; increase D) decreases; decrease