A decrease in the price of large tractors imported into the United States from Russia
a. leaves the GDP deflator unchanged but decreases the consumer price index.
b. decreases the GDP deflator but leaves the consumer price index unchanged.
c. decreases both the GDP deflator and the consumer price index.
d. leaves both the GDP deflator and the consumer price index unchanged.
d
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If no fiscal policy changes are made, suppose the current aggregate demand curve will increase horizontally (shift rightward) by $1,000 billion and cause inflation. If the marginal propensity to consume is 0.90, federal policymakers could follow Keynesian economics and restrain inflation by decreasing:
a. government spending by $100 billion. b. taxes by $100 billion. c. taxes by $1,000 billion. d. government spending by $1,000 billion.
The inflation index that is most favored by economists is the
a. Consumer Price Index. b. GDP Implicit Price Defoliator. c. Producer Price Index. d. Commodity Price Index.
Which of the following has a present value of $100?
a. $109.12 in two years when the interest rate is 4 percent b. $113.98 in two years when the interest rate is 6 percent c. $116.64 in two years when the interest rate is 8 percent d. $123.17 in two years when the interest rate is 10 percent
Which of the following is most likely to be sold in an oligopoly market?
A) pizza B) wireless service C) electricity D) cotton