Deflation occurs only when
A. all prices for all goods fall.
B. some prices fall, but average prices still rise.
C. the average price level increases but at a slower rate than before.
D. the average price level (CPI) falls.
Answer: D
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Keynes argued that if the economy is in a severely depressed state then __________ is constant
A) real GDP B) the price level C) velocity D) nominal GDP
Refer to Figure 19-7. At what level should the Indian government peg its currency to the dollar to make U.S. imports cheaper in India?
A) less than $.02/rupee B) equal to $.02/rupee C) greater than $.02/rupee D) $1/rupee
Which of the following is a macroeconomics topic?
a. Wages of textile workers in the Northeast. b. The cost of producing 10,000 bookcases. c. The economy's annual growth rate. d. National demand for fish. e. Effects of farm subsidies on food prices.
Does having an absolute advantage in producing both goods mean that you’re guaranteed to have a comparative advantage in both goods? Explain your answer.
What will be an ideal response?