Assume the table has recorded the total output and prices of the only two goods produced. Looking at the figures in the table and using them to construct the GDP deflator, we can note the GDP deflator in 2003 was:
A. 135
B. 74
C. 109
D. 105
A. 135
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Suppose that when the price of hamburgers decreases, the Ruiz family increases their purchases of ketchup. To the Ruiz family
A) hamburgers and ketchup and substitutes. B) hamburgers and ketchup are normal goods. C) hamburgers are normal goods and ketchup is an inferior good. D) hamburgers and ketchup are complements.
The existence of international policy externalities provides an incentive for
A) strategic policy making. B) monetary autonomy. C) optimal currency areas. D) inflationary policy bias.
Suppose that a bond-financed deficit shifts the IS curve to the right, taking IS-LM equilibrium "northeast" from point A to point B
If government bonds are considered net wealth by the public sector, then by the portfolio theory of asset-holding there is an excess ________ money at point B because the LM curve has shifted ________ with increased wealth, and thus the fiscal policy turns out to be ________ expansionary than without the wealth effect. A) demand for, downward, more B) demand for, downward, less C) demand for, upward, less D) supply of, downward, more E) supply of, upward, more
In the long run, zero economic profit exists in monopolistic competition and perfect competition
a. True b. False Indicate whether the statement is true or false