Over a period of time, a nation's GDP increases by 3 percent at constant prices and by 5 percent at current prices. Other things being equal, the price level changed by about:
a. 2 percent
b. 3 percent
c. 8 percent
d. 5 percent
Answer: a. 2 percent
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The supply of a good will tend to be highly elastic if
A) additional resources to produce the good can be obtained quickly and with no increase in cost. B) its price rises quickly and sharply when the demand increases. C) the good has few close substitutes. D) the good is generally classified as a luxury. E) the good is generally classified as a necessity.
Under the gold standard, a country experiencing a fall in its gold reserves was supposed to:
(a) Expand loans (b) Buy securities (c) Lower discount rates (d) Cut loans
The Sherman Antitrust Act was passed in:
a. 1890. b. 1914. c. 1929. d. 1933.
You watch a lot of HGTV during your summer vacation, and you notice that most housing buyers list granite countertops in their "must have" lists when buying a new or existing house. You expect the demand for
a. granite countertops to shift to the left. b. granite countertops to shift to the right. c. substitute products such as marble countertops to shift to the right. d. substitute products such as marble countertops to be unaffected by buyers' preferences for granite.