If a market basket was defined in 2014 and it cost $10,000 to purchase the items in that basket in 2014, while it cost $11,000 to purchase those identical goods in 2015, then the base year is
A. 2014.
B. 2013.
C. 2015.
D. none of these.
Answer: A
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If a macroeconomic model consists of upward-sloping short-run aggregate supply and downward-sloping aggregate demand, can it possibly generate a constant real GDP with no business cycles over time?
A) No, only a vertical short-run aggregate supply curve can produce that result. B) No, only a horizontal short-run aggregate supply curve can produce that result. C) Yes, but the short-run aggregate supply curve must never shift. D) Yes, if the aggregate demand and short-run aggregate supply curves shift in perfect unison.
Savings that pay for capital investment can come from:
A. within a country. B. outside a country. C. domestic savings. D. All of these are true.
Which of the following actions of the Fed would increase the money supply?
a. The purchase of U.S. government securities. b. A reduction in the discount rate. c. A reduction in the required reserve ratio. d. All of the above are correct.
In response to the deep economic downturn in the US in 2008 and 2009, the US
a. reduced taxes. b. increased government spending. c. increased the supply of money. d. All of the above are correct.