If we look at governmental budgets over time using nominal figures, we
a. have a clearer understanding of the real size of the budget
b. are able to focus on the real impact of government spending on potential GNP
c. tend to overestimate the size of the budgetary growth
d. usually underestimate the size of the burden of the debt
e. are ignoring what we can learn from nominal data
C
You might also like to view...
When the balance of trade is in balance, we know with certainty that
A) the value of all debit transactions equals the value of all credit transactions. B) the value of exports of goods equals the value of imports of goods. C) the value of capital exports equals the value of capital imports. D) the value of exports of goods and services equals the value of imports of goods and services.
Suppose Arf n' Barf restaurant has a monopoly on restaurant food in a certain small town. Their rent, which is one of several fixed costs they pay whether they sell food or not, has gone up. In the short run, the Arf n' Barf should
a. pay the higher rent and increase menu prices b. pay the higher rent and leave menu prices unchanged c. pay the higher rent and lower prices d. go out of business e. shut down
Which of the following can best be characterized as a subject of macroeconomics?
A. An examination of how a change in demand or supply impacts the price of a good B. An examination of monetary policy C. An examination of specialization D. An examination of the production of a good
Price leadership
A. Is common in perfectly competitive markets. B. Results in a more competitive market. C. Typically results in greater instability in oligopolistic markets. D. Permits oligopolistic firms in a given market to coordinate market wide price changes.