If investment increases ,which of the following happens?
i. Aggregate expenditure increases.
ii. Real GDP increases.
iii. Consumption expenditure decreases.
A) i only B) ii and iii C) ii only D) i and ii E) i, ii, and iii
D
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If a country had a nominal GDP of $7,664 billion and a real GDP of $9,346 billion, what was the GDP deflator?
a. 80 b. 82 c. 120 d. 122
Which of the following is correct?
a. No forms of capital income are taxed twice. b. The tax code cannot be rewritten to provide greater incentive to save. c. Means-tested benefits increase the incentive to save. d. There is a correlation between national savings rates and measures of economic well-being.
The quantity of reserves held by a bank in addition to the legally required amounts is known as:
a. actual reserves. b. excess reserves. c. the required reserve ratio. d. the money multiplier. e. the monetary base.
List three reasons why wages could be set above the equilibrium wage