The GDP deflator reflects the
a. level of prices in the base year relative to the current level of prices.
b. current level of prices relative to the level of prices in the base year.
c. level of real output in the base year relative to the current level of real output.
d. current level of real output relative to the level of real output in the base year.
b
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Alan could most directly apply the principles of economic decision making with respect to his job when:
A. deciding how to spend his paycheck. B. deciding which girl to marry. C. deciding what to have for dinner after a long day at work. D. deciding which route on his way to work is the most scenic.
Which of the following does not lead to the CPI underestimating increases in prices?
a. The substitution bias b. The quality bias c. The new outlet bias d. The housing bias
The payoff matrix below shows the daily profit for two firms, Row Restaurant and Column Cafe, for two different strategies, publishing coupons in the student paper and not publishing coupons in the student paper. 
The payoffs of this game are such that:
A. if Row Restaurant expects Column Cafe to choose its dominant strategy, then Row Restaurant should choose its dominated strategy. B. an agreement not to publish coupons would be easy to maintain because neither firm has an incentive to defect. C. both firms would benefit from a law that made publishing coupons illegal. D. profit at each firm is higher when they both follow their dominant strategy than when they both follow their dominated strategy.
Federal Reserve policy makers argue about whether productivity is increasing faster than it has in the past. If productivity is growing faster than anticipated, they would expect the:
A. short-run aggregate supply curve to be shifting down (to the right). B. aggregate demand curve to be shifting to the left. C. short-run aggregate supply curve to be shifting up (to the left). D. aggregate demand curve to be shifting to the right.