If the government of a country decides to cut the tax rates, there will be a(n):
a. upward movement along the short-run Phillips curve.
b. downward movement along the short-run Phillips curve.
c. rightward shift of the short-run Phillips curve
d. leftward shift of the short-run Phillips curve.
a
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All of the following are reasons why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services except
A) contracts make prices and wages sticky. B) unions are successful in pushing up wages. C) menu costs make some prices sticky. D) firms are often slow to adjust wages.
The "Big Mac index" was created by The Economist magazine to determine
A. how successful the McDonald's corporation has been around the world. B. the accuracy of exchange rates. C. whether or not the dollar was overvalued or undervalued. D. None of these statements are true.
If an increase in investment of $100 billion generates an increase of $500 billion in real GDP, the multiplier is
a. 20. b. 50. c. 1.50. d. 5.00.
In 1991, the base year, GDP was 5000. In 1993 the GDP deflator was 106. We may conclude that
A. GDP rose to more than 5000 in 1993. B. GDP fell to less than 5000 in 1993. C. GDP remained at 5000 in 1993. D. None of the choices are correct.