Active macroeconomic policy would move to close an expansionary gap by decreasing aggregate demand
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following should be used to compare the incomes of countries with huge differences in cost of living?
A) Gross national product B) Exchange rate-based measure of income per capita C) Income per working age population D) PPP-based measure of income per capita
Consumer sovereignty answers which central issue in economics?
a. How will goods be produced? b. Who will produce the goods? c. What goods will be produced? d. For whom will the goods be produced? e. By what method will the goods be produced?
The CPI and GDP deflator usually tell two different stories about how quickly prices are rising
a. True b. False Indicate whether the statement is true or false
Other things the same, as the price level rises, the real value of a dollar
a. rises, and interest rates rise. b. rises, and interest rates fall. c. falls, and interest rates rise. d. falls, and interest rates fall.