All of the following present significant problems with measuring real GDP and the price level except
A) changes in absolute price levels.
B) changes in relative price levels.
C) changes in the quality of goods over time.
D) the introduction of new goods.
A
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During his tenure at the helm of the Federal Reserve System, Paul Volcker reestablished ________
A) a system of fixed exchange rates B) the role of open market operations in the monetary policy actions of the Fed C) the credibility of the Federal Reserve as an inflation fighting institution D) the targeting of monetary aggregates, like the fed funds rate
For a perfectly competitive firm,
a. P = MR at all output levels b. P = MR at the profit-maximizing quantity only c. P > MR at all output levels d. P < MR at the profit-maximizing quantity only e. P < MR at all output levels
Distinguish between demand and quantity demanded. Do the same for supply and quantity supplied
If there is a shortage in a free market, then
A. suppliers will decrease their output to match demand. B. consumers will offer to pay a lower price for the good, and the price will fall toward the equilibrium level. C. suppliers will accept any price below equilibrium. D. consumers will offer to pay a higher price for the good, and the price will rise toward the equilibrium level.