The GDP deflator:
a. includes fewer goods and services than the CPI
b. generally rises substantially faster than the CPI during inflationary conditions.
c. ignores investment goods and goods produced by the government.
d. is the broadest generally reported measure of inflation.
d
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Bank reserves will increase if which of the following changes occurs, assuming that there are no offsetting changes elsewhere on the Fed's balance sheet?
A) Fed loans decrease B) Currency held by the public increases C) Treasury deposits increase D) The float decreases
All of the following tends to occur when unemployment is above the natural rate EXCEPT:
A) wage increases will be limited B) inflation will rise C) increases in the cost of production will be limited D) there is slack in the labor market
The quantity theory of money states explicitly that the:
A. money supply is determined by the price level. B. there is no relationship between the value of money and the quantity of money in existence. C. value of money is determined by the overall quantity of money in existence. D. Real GDP is determined by the money supply.
Philosophical issues regarding income redistribution deal with all of the following except
A. What is the ideal distribution of income? B. What is and is not possible? C. What is just? D. What is fair?