Changes in the GDP deflator reflect
a. only changes in prices.
b. only changes in the amounts being produced.
c. both changes in prices and changes in the amounts being produced.
d. neither changes in prices nor changes in the amounts being produced.
a
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Paul Romer's theory on the importance of knowledge differs from traditional theory in that Romer
A) argues, that investment is not important in promoting growth, but that the acquisition of knowledge is the sole determinant of economic growth. B) argues that an investment-knowledge cycle allows a once-and-for-all increase in investment to permanently raise a country's growth rate, while traditional theory argues that a once-and-for-all increase in investment leads to a higher standard of living but not to a higher growth rate. C) argues, that an investment-knowledge cycle exists which requires that investment rates keep increasing or else growth rates will fall, while traditional theory argues that growth rates will not fall, although they will not increase either. D) emphasizes investment rates while traditional theory emphasizes the importance of knowledge as a factor of production.
For a monopoly, MC = MR < P so that MC < MU
a. True b. False Indicate whether the statement is true or false
How did the gold standard contribute to the spreading of the Great Depression of the 1930s?
What will be an ideal response?
In economic decision making, what is a net benefit?
a. the fair-market value of both the money costs and the non-money costs b. the financial value gained from comparative advantages and absolute advantages c. the projected difference between marginal thinking and opportunity costs d. the difference between expected marginal benefits and expected marginal costs