Inflation is defined as
A) the rate of increase in the government budget deficit.
B) the increase in the money supply.
C) the rate of change in the average level of prices.
D) the nominal interest rate minus the price level.
C
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What is the difference between induced and autonomous expenditure? Which components of aggregate expenditure fall under which category?
What will be an ideal response?
All of the following could be covered by patent protection except
A) a newly discovered Beethoven symphony. B) a new variety of hybrid rose bush. C) a hydrogen fuel cell engine. D) a laser hair-removal device.
When an economy is operating at its full employment rate of output:
A. the rate of unemployment will be zero. B. output will exceed the economy's maximum sustainable rate. C. the actual rate of unemployment will equal the natural rate. D. the economy's potential rate of output will exceed actual GDP.
The Federal Reserve Bank of New York is unique from other Reserve banks because it:
A. is where the Federal Reserve System's portfolio is managed. B. is the only regional Bank that serves just one state. C. is the oldest and therefore the largest. D. is the only regional Bank located in a financial center.