How is real GDP calculated?
What will be an ideal response?
The traditional method of calculating real GDP is to value each year's production using the constant prices of a fixed base year and then sum all the values.
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How can an insurance company offer people a deal worth taking? Why do both the buyers and the sellers of insurance gain?
What will be an ideal response?
Suppose Enid could increase her total utility by purchasing one more book and one less video rental. Which of the following is true?
a. The marginal utility of video rentals exceeds the marginal utility of books. b. The marginal utility of books exceeds the marginal utility of video rentals. c. The marginal utility of video rentals is negative. d. The marginal utility per dollar spent on books exceeds that of video rentals. e. Total utility is at a maximum.
A property tax is a
a. progressive tax assessed on property ownership b. flat rate tax assessed on physical assets such as land c. flat rate tax assessed on income received from property ownership d. flat rate tax assessed on the sale of property and other physical assets e. progressive tax assessed on the sale of property and other physical assets
Which of the following is (are) true regarding monetary policy targeting?
a. Since 1982, the Fed has emphasized money aggregate targets. b. Milton Friedman said that the Fed should pay more attention to interest rates and should focus less on growth of money supply. c. In the short run, it is useless to target interest rates as a tool of policy. d. In 1979, the Fed deemphasized interest rates and targeted specific money aggregates.