What is the chain-weighted price index for GDP in the base year?
A) 0
B) 1
C) 100
D) The answer depends on the price index for the current year.
C
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Because of their relatively small national economies, which of the following is most likely considered to be the most important factor for Belgium, Korea, and Canada to take full advantage of specialization?
A. division of labour B. international trade C. economies of scale D. command economy
State and local governments issue bonds to fund capital projects, such as schools and infrastructure
a. True b. False Indicate whether the statement is true or false
The behavior of the perfectly competitive firm: a. theoretically leads to an inefficient allocation of resources
b. maximizes the benefits to consumers, given the resources available to the economy. c. reduces output in order to raise prices in the short-term. d. results in excess capacity and inefficiency.