A change in the average price level is called ________, while a change in the price of a specific good in comparison with other goods and services is called ________.
A. a change in a relative price; inflation
B. a quality adjustment; a substitution bias
C. a price level adjustment; a quality adjustment
D. inflation; a change in a relative price
Answer: D
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Suppose the currency drain ratio is 25 percent and the desired reserve ratio is 20 percent. The money multiplier equals
A) 4.00. B) 5.42. C) 2.00. D) 2.78. E) 3.00.
The economy is undergoing a recession that has reduced consumers' incomes. In the computer chip market, this will lead to
A) an increase in price and a decrease in quantity. B) an increase in price and an increase in quantity. C) a decrease in price and a decrease in quantity. D) a decrease in price and an increase in quantity.
We can calculate how long a country will take to double its real GDP per capita using:
A. its average growth rate. B. its GDP deflator. C. the CPI indexation factor. D. the GDP growth estimator.
Dan Unowsky manages a production group in a PC repair shop. He has noticed that the speed of repair is based on each worker doing one task. However, if an employee is out sick, then the entire repair process slows down. This is an example of
A. coordination costs. B. managerial ineptitude. C. the absolute need for every employee to be trained in all aspects of PC repair. D. the trade-off between low cross-training costs and reduced flexibility of the employees.