If a price floor is not binding, then it will have no effect on the market
a. True
b. False
Indicate whether the statement is true or false
True
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A person's wealth is the same as his income
Indicate whether the statement is true or false
A shift of the AD curve
A) to the right is considered expansionary, and a shift to the left is considered contractionary. B) to the left is considered expansionary, and a shift to the right is considered contractionary. C) to the right or to the left is considered contractionary. D) to the right or to the left is considered expansionary.
Which of the following statements best describes the study of economics?
A. Economics studies how people maximize returns in the stock market. B. Economics studies how the Federal Reserve handles fluctuation in business cycles. C. Economics studies how governments determine appropriate tax rates. D. Economics studies how individuals and groups manage scarce resources.
Refer to the data. In determining real GDP, the nominal GDP for:
Assume an economy that makes only one product and that year 3 is the base year. Output and price data for a five-year period are as follows. Answer the question on the basis of these data.
A. each year must be multiplied by the relevant price index.
B. years 1 and 2 must be inflated.
C. years 4 and 5 must be inflated.
D. years 1 and 2 must be deflated.