Higher inflation
a. causes firms to change prices less frequently and makes relative prices less variable.
b. causes firms to change prices less frequently and makes relative prices more variable.
c. causes firms to change prices more frequently and makes relative prices less variable.
d. causes firms to change prices more frequently and makes relative prices more variable.
d
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Which of the following examples could be included in the income approach to GDP?
a. a salary of $50,000 a year for working as a librarian b. a payment of $20 for a T-shirt c. spending $15 on imported beer d. the cost of $1 million for building a steel factory
The aggregate demand curve indicates the relationship between:
A. the real wage rate and the quality of resources demanded by producers of goods and services. B. the interest rate and the amount of loanable funds demanded by borrowers. C. the natural rate of unemployment and the demand for goods and services when the economy is in long-run equilibrium. D. the general price level and the aggregate quantity of goods and services demanded.
Government purchases include expenditures for publicly owned capital such as schools and highways that have long lifetimes.
Answer the following statement true (T) or false (F)
Under a system of marketable pollution permits, the government:
A. chooses a level of pollution. B. distributes permits to polluting firms. C. allows firms to trade permits. D. All of these