Suppose that an economy is initially producing at the full-employment level of output. Now suppose there is a reduction in the money supply. Other things being equal we can expect
A. demand-side inflation.
B. cost-pull inflation.
C. supply-side inflation.
D. deflation.
Answer: D
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The GDP deflator is a measure of
A) taxes and subsidies. B) changes in quantities. C) prices. D) depreciation. E) changes in nominal GDP.
Compared to the GDP deflator, the consumer price index measures:
A) the price of all the goods and services produced in the economy. B) the price of a fixed market basket of goods and services. C) the price of exported goods and services. D) the price of wholesale goods and services.
The textbook for your class was not produced in a perfectly competitive industry because
A) there are so few firms in the industry that market shares are not small, and firms' decisions have an impact on market price. B) upper-division microeconomics texts are not all alike. C) it is not costless to enter or exit the textbook industry. D) of all of the above reasons.
Which of the following would be most likely to help the residents of a nation produce a larger output and consume a wide variety of products at economical prices
What will be an ideal response?