Explain how real GDP differs from nominal GDP
Real GDP reflects only the changes in production and is not affected by the changes in prices.
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Discretionary fiscal policy is defined as fiscal policy
A) left to the discretion of military authorities. B) initiated by an act of Congress. C) initiated by a Presidential proclamation. D) triggered by the state of the economy. E) with multiplier effects.
In the figure above, the marginal rate of substitution (MRS) at point A is
A) greater than the MRS at any other point on the indifference curve. B) equals the MRS at all other points on the indifference curve. C) less than the MRS at any other point on the indifference curve. D) equal to the slope of the budget line.
A country is strongly inward-oriented if exports are clearly discouraged by controls to isolate and protect the domestic market
a. True b. False Indicate whether the statement is true or false
The utility derived from consuming a good depends on:
a. the price of the good. b. the market demand for the good. c. your tastes and preferences. d. your income level.