If the GDP deflator rises from one year to the next, we know that
A) economic growth has occurred.
B) everyone in the economy is at least slightly worse off.
C) real GDP has declined.
D) the amount of double-counting in GDP has increased.
E) the average money price of the goods included in GDP has risen.
E
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Refer to Figure 15-18 to answer the following questions
a. What quantity will this monopoly produce and what price will it charge? b. Suppose the government decides to regulate this monopoly and imposes a price ceiling of $25. Now what quantity will the monopoly produce and what price will it charge? c. Will every consumer who is willing to pay the ceiling price of $25 be able to buy the product? Briefly explain.
Direct investment in the stock market by the Social Security trust fund
A) does not require that new money be brought into the system. B) would be more cost-effective than creating private accounts for each person in the Social Security system. C) would cause the government indirectly to own substantial parts of American companies. D) All of the above.
Although accounts in commercial banks are covered by government insurance, accounts in other financial institutions are not
If the government decides to bail out these other types of financial institutions during times of a financial crisis, it risks increasing the level of ________ in the financial system. A) moral hazard B) liquidity C) asset deflation D) insolvency
Authorization to start a business issued by the local government is called a/an
A. liability B.IPO C. royalty D. business license