The difference between the official and correct measures of the deficit will be greater,
A) the lower is government spending.
B) the lower is the level of debt, B.
C) the higher is inflation.
D) none of the above
C
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If firms' inventories exceed their planned inventories, firms
A) increase employment. B) increase GDP. C) increase production. D) increase income. E) decrease production.
In a two-asset economy with money and T-bills, the quantity of money that people will want to hold, other things being equal, can be expected to:
a. increase as the real GDP interest rate increases. b. decrease as the real GDP interest rate increases. c. decrease as real GDP increases. d. none of these.
Karl can produce either 10 tons of oranges or 5 tons of apples in a year, while Adam can produce either 5 tons of oranges or 10 tons of apples. Refer to Exhibit 28-2. Which of the following would be mutually beneficial terms of trade between Karl and Adam?
A. 1 ton of apples per 2 1/2 tons of oranges B. 1 ton of apples per 1 1/2 tons of oranges C. 1 ton of apples per 1/4 ton of oranges D. 1 ton of apples per 1/5 ton of oranges
Classical economists and monetarists believe that the economy operates at full- employment GDP. Therefore, any increase in the money supply will cause both nominal and real GDP to increase
Indicate whether the statement is true or false