The quantity theory of inflation indicates that if the aggregate output is growing at 3% per year and the growth rate of money is 5%, then inflation is
A) 2%.
B) 8%.
C) -2%.
D) 1.6%.
A
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The relationship between income and education is clear. At every age, those with more education earn more
a. True b. False
Which of the following is an appropriate discretionary fiscal policy if equilibrium real GDP falls below potential real GDP?
A) an increase in government purchases B) an increase in the supply of money C) an increase in individual income taxes D) a decrease in transfer payments
Among countries with per capita gross national income in 2006 of greater than $24,000,
A. services tend to represent a smaller share of GDP. B. agriculture tends to produce a larger share of GDP. C. the consumer price inflation rate tends to be lower. D. high-income households tend to consume a larger share of GDP.
State whether you agree with the following statement and why: "It doesn't make sense to give poor people cash since they'll spend it on cigarettes and lottery tickets instead of needed items."
What will be an ideal response?