If you purchased shares of common stock in 1990 for $1,000 and sold them for $2,000 in 2001 you would be liable for taxes on
a. $2,000.
b. $1,000 less the rate of inflation.
c. $1,000.
d. $2,000 less the rate of inflation.
c
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
If Good Tissue sells its toilet paper only in packages of six rolls, this is an example of ________.
A) two-part pricing B) commodity bundling C) an all-or-nothing offer D) linear pricing
If the Fed purchases U.S. government securities in the open market, all of the following would occur EXCEPT
A) an expansion of the money supply. B) an increase in investment. C) a fall in bond prices. D) an increase in real Gross Domestic Product (GDP).
What is the difference between nominal and real GDP?
a. Nominal GDP is adjusted for changes in the price level; real GDP is not. b. Real GDP is adjusted for taxes and transfer payments; nominal GDP is not. c. Real GDP is adjusted for changes in the price level; nominal GDP is not. d. Nominal GDP is adjusted for depreciation; real GDP is not. e. Real GDP is adjusted for depreciation; nominal GDP is not.