In the above figure, a movement from point B to point C represents

A) an increase in the quantity of money demanded.
B) a decrease in the quantity of money demanded.
C) a decrease in the demand for money that might be the result of an increase in real GDP.
D) an increase in the demand for money that might be the result of a fall in the price level.
E) an increase in the demand for money that might be the result of an increase in real GDP.


E

Economics

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The chain-weighted index for GDP and the CPI differ in that the CPI

A) asks how much a fixed basket of goods costs in the current year as compared to the cost of those same goods in a base year while the chain-weighted index takes an average of price changes using base years from neighboring years. B) excludes price changes from used and imported goods while the chain-weighted index includes these price changes. C) is calculated by the Commerce Department while the chain-weighted index is calculated by local newspapers. D) is calculated in nominal terms and the chain-weighted index is calculated in real terms.

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Outlawing the sale of a good shifts the supply curve

A) leftward and lowers the price. B) leftward and raises the price. C) rightward and lowers the price. D) rightward and raises the price.

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The largest component of GDP as measured by the expenditure approach is:

a. wages and salary earnings. b. personal consumption. c. net profits of corporations. d. gross private investment.

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The federal government pays for what percentage of research and development?

a. 0.91% b. 60.2% c. 32% d. 3.6%

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