To which of the problems in the construction of the CPI is the invention of pocket-sized computers most relevant?
a. substitution bias
b. introduction of new goods
c. unmeasured quality change
d. income bias
b
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In economics, the study of the decisions of firms in industries where the profits of each firm depend on its interactions with other firms is called
A) profit analysis. B) market structure analysis. C) game theory. D) decision theory.
When actual output is less than potential output, there is ________ output gap and the inflation rate will ________.
A. an expansionary; be lower than the expected rate of inflation B. a recessionary; exceed the expected rate of inflation C. a recessionary; be lower than the expected rate of inflation D. an expansionary; exceed the expected rate of inflation
How is monopolistic competition like perfect competition? How is it like monopoly?
What will be an ideal response?
The new Keynesian sticky-price theory indicates that an increase in aggregate demand generates
A) a speedy rise in real GDP but a sluggish increase in the price level. B) a speedy rise in the price level but a sluggish increase in real GDP. C) sluggish increases in both real GDP and the price level. D) rapid increases in both real GDP and the price level.