If the price of inputs rises and consumer expectations about future economic activity worsens:
a. The change in price index is uncertain, and real GDP falls.
b. The change in price index is uncertain, and real GDP rises.
c. Price index rises, and the change in real GDP is uncertain.
d. Price index falls, and real GDP rises.
e. Price index falls, and real GDP falls.
.A
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The gambler's fallacy suggests that what happened in the past will influence the present. This is most likely true in which of the following situations?
A) flipping cards from a single deck B) tossing a fair coin C) the quality of play of a baseball team D) horse racing
Explain why public goods can be classified as market failure? Explain what problem arises when public goods are produced?
What will be an ideal response?
A debt that rises faster than nominal GDP will impose the following opportunity costs in the future:
a. A permanently higher tax burden. b. A period of inflation. c. Reduced government outlays relative to GDP d. Higher taxes relative to GDP. e. All of the above.
If the price of inputs rises and consumer expectations about future economic activity worsens:
a. Aggregate demand and aggregate supply rise. b. Aggregate demand and aggregate supply fall. c. Neither aggregate demand nor aggregate supply change. d. Aggregate demand rises, and aggregate supply falls. e. None of the above.