According to the following table, what is the price index for 2021 if 2019 is the base year?
a. 1.47
b. 1.75
c. 147
d. 175
d. 175
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GDP can be measured by the
A) total value of all sales in the economy. B) total market value of final goods and services produced in the economy. C) total value of all intermediate goods produced in the economy. D) net national product plus investment.
"Inflation Targeting Rule" is a special case of a
A) Taylor Rule with zero weight on output. B) Taylor Rule with zero weight on inflation. C) Taylor Rule with an equal weight on output and inflation. D) Taylor Rule with different but positive weights on output and inflation.
If a firm hires 215 workers it will produce 3,016 units of output. If it hires 216 workers it will produce 3,128 units of output. The marginal physical product of labor equals
A) 1. B) 112. C) 216. D) 3,128.
The real wealth effect provides a partial explanation for why the aggregate demand curve slopes downward. Which of the following statements best explains the real wealth effect?
A. At a lower price level domestically produced items are relatively less expensive than foreign goods and therefore are in greater demand. B. At a lower price level the real interest rate tends to be lower, and thus the quantity of investment goods demanded is larger. C. At a lower price level consumers will buy less because of a reduction in the real money supply. D. At a lower price level the purchasing power of accumulated savings is larger, and thus consumers will purchase more goods.