If inflation causes the absolute prices of all commodities to double, then the relative prices
a. will also double.
b. will be halved.
c. will be unchanged.
d. may rise, fall, or remain unchanged.
c. will be unchanged.
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Spending on programs that Congress authorizes ________ is known as discretionary spending
A) after approval from the Federal Reserve B) on an off-budget emergency basis C) by prior law D) on an annual basis
In the figure above, the natural unemployment rate is
A) 6 percent. B) 0 percent. C) 8 percent. D) 4 percent. E) 2 percent.
An example of a good or service that would count in the U.S. GNP would be a bag of coffee made in:
A. Vermont by Green Mountain Coffee Roasters. B. Colombia by Dunkin' Donuts. C. Canada by Starbucks. D. All of these would count in U.S. GNP.
Which of the following is not true for a public good?
a. Marginal cost of serving public good to one more person is zero. b. Free rider problem arises in case of public goods. c. Exclusion is not possible in most of the public goods. d. Public goods include only material commodities.