The GDP deflator measures how prices change over time.
Answer the following statement true (T) or false (F)
True
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Most Mexican workers can increase their wages if they migrate to the United States, a demand-pull factor for migration
Indicate whether the statement is true or false
If the government wishes to increase the level of real GDP, it might reduce:
A. Taxes B. Transfer payments C. The size of the budget deficit D. Its purchases of goods and services
Which of the following statements is FALSE?
a. The rationing function of prices is not allowed to freely operate when the government imposes price controls. b. Price controls may take the form of price ceilings or price floors. c. Price ceilings below the equilibrium price can cause black markets to develop. d. Rent controls are examples of price floors.
The above figure shows the market for 2 bedroom town homes in San Diego. If a rent ceiling is set at $1,000 per month, what is the maximum rent someone is willing to pay in the black market?
A) $1,300 per month B) $1,000 per month C) $900 per month D) $1,100 per month E) $1,400 per month