Is it possible to have a GDP deflator of less than 100?
A. Yes, it would indicate a year when prices were lower than in the base year.
B. Yes, it would indicate a year when output was lower than in the base year.
C. No, that is mathematically impossible for the deflator to be less than 100.
D. Yes, it would indicate a year when prices were lower than in the previous year.
A. Yes, it would indicate a year when prices were lower than in the base year.
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Refer to the scenario above. A basket of goods worth $1 in the U.S. has a price of ________ in Country 2
A) 320 ritz B) 50 ritz C) 12.5 ritz D) 25 ritz
In the absence of financial frictions, ________
A) interest rates for different borrowers move closely together B) all loans in the economy are transacted at a common interest rate C) the level of output is not affected by changes in the real interest rate D) an increase in inflation leads to a decrease in the real interest rate
The marginal rate of technical substitution is equal to the
A) slope of the total product curve. B) change in output minus the change in labor. C) change in output divided by the change in labor. D) ratio of the marginal products of the inputs.
Suppose the demand curve is perfectly inelastic and the supply curve is upward sloping. The price sellers receive after a specific tax is imposed on sellers
A) is less than before the tax. B) is higher than before the tax. C) is unchanged. D) depends on the supply elasticity.