Suppose that U.S. mining companies purchase German-made ore trucks at a reduced price. By itself, what effect will this purchase have on the GDP deflator and on the consumer price index?
a. The consumer price index and the GDP deflator will both fall.
b. The consumer price index and the GDP deflator will both be unaffected.
c. The consumer price index will fall, and the GDP deflator will be unaffected.
d. The consumer price index will be unaffected, and the GDP deflator will fall.
b
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Suppose the Fed increases the money supply. As a result of this, people go out and spend more money on consumer goods, increasing aggregate spending. This is known as a(n)
A) indirect effect of monetary policy. B) direct effect of monetary policy. C) indirect effect of fiscal policy. D) direct effect of fiscal policy.
Which of the following would most likely cause the demand for veggie-burgers to increase?
a. A decline in the price of veggie-burgers b. An increase in the price of tofu-burgers, perceived as a substitute for veggie-burgers c. An increase in the price of burger buns d. A decline in the prices of some of the vegetables used for the burger
In the short run, in equilibrium, firms that operate in a monopolistically competitive market face a down sloping demand curve and will charge a price where _____ and ______.
a. quantity produced is maximized; costs are minimized b. sales revenue is maximized; costs are falling c. MR = MC; P > average cost d. average costs are rising; sales are rising
In a mixed open economy, which of the following all affect the equilibrium GDP in the same direction?
A. C a , I g , S a , and M. B. S a , T, and M. C. I g , T, and C a . D. S a , I g , and X.