You are likely to think that the relative price of your good has risen and you should increase your output if you expected
A) the inflation rate to be 10% and the price of your good rose 7%.
B) the inflation rate to be 10% and the price of your good rose 10%.
C) the inflation rate to be 10% and the price of your good rose 13%.
D) the inflation rate to be 0% and the price of your good fell 10%.
C
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If real GDP doubles and the GDP deflator doubles, then nominal GDP
a. remains constant. b. doubles. c. triples. d. quadruples.
All of the following will decrease the demand for labor by firms in an industry except
A. a decrease in the prices of inputs that complement labor. B. a decrease in the demand for the product produced by the industry. C. a decrease in the price of the product produced by the industry. D. a decrease in the prices of inputs that substitute for labor.
The amount of reserves that a commercial bank is required to hold is equal to:
A. the amount of its checkable deposits. B. the sum of its checkable deposits and time deposits. C. its checkable deposits multiplied by the reserve requirement. D. its checkable deposits divided by its total assets.
Many people leave their servers tips in restaurants, even when they are not likely to visit the restaurant again. This is evidence that
A) people would rather pay for good service at an inexpensive restaurant than pay higher prices and receive poor service at an expensive restaurant. B) people enjoy eating at restaurants more than eating at home. C) people treat others fairly even if doing so makes them worse off financially. D) there has been an improvement in the service people receive in restaurants over time, partly because the restaurant industry has become more competitive.