Because GDP does not fully account for improvements in the quality of goods,
a. the inflation rate is understated and real GDP is overstated.
b. the inflation rate is overstated and real GDP is understated.
c. both the inflation rate and real GDP are overstated.
d. both the inflation rate and real GDP are understated.
B
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A subsidy payment, even if paid entirely to the seller, will impact the price, supply of, and quantity demanded of a good
a. True b. False Indicate whether the statement is true or false
Central banks in developing countries:
A. monetize government debt to a much greater degree than developed countries. B. monetize government debt to roughly the same extent as developed countries. C. monetize government debt, but in a more limited manner than developed countries. D. do not monetize government debt.
When firms cooperate with one another, it is generally good for the cooperating firms.
Indicate whether the statement is true or false
Legislators often have difficulty passing legislation with widespread benefits, but that imposes concentrated costs because those who bear the costs will __________ the legislation, while those who would reap the benefits will __________ the legislation
a. protest; actively support b. not protest; not actively support c. not protest; actively support d. protest; not actively support e. protest; protest