Which of the following statements is true?
a. Disinflation is an increase in the rate of inflation.
b. Real income is the actual number of dollars received over a period of time.
c. The consumer price index (CPI) measures changes in the average prices of consumer goods and services.
d. Deflation is an increase in the general level of prices.
c
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Consider the following statements when answering this question. I. If no consumer has a kinked demand curve for CDs, then the market demand curve for CDs cannot be kinked either. II
If at a price of $10, every consumer has inelastic demand, then at that price the market demand for CDs will be inelastic too. A) I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) I and II are false.
In summary, many of the government's farm programs are an attempt to shift the
a. demand curve for farm goods to the right b. demand curve for farm goods to the left c. supply curve for farm goods to the left d. supply curve for farm goods to the right e. supply and demand curves for farm goods to the right
The government wishes to close an inflationary gap by reducing national income by $400 billion. Assuming a tax multiplier of 4 and an income multiplier of 5, which of the following policy prescriptions would reduce the inflationary gap by $400 billion?
a. decreasing government spending by $400 billion and increasing taxes by $400 billion b. decreasing government spending by $160 billion and decreasing taxes by $100 billion c. decreasing government spending by $40 billion and decreasing taxes by $40 billion d. decreasing government spending by $80 billion and keeping taxes the same e. doing absolutely nothing to the economy
Giving states control of nonpoint source pollution
a. has no advantages b. can be problematic because states generally have inadequate data to assess the problem c. is advantageous because it results in greater consistency of control d. was not the original intent of the 1987 legislation