Based on the table "Real and Nominal GDP," if year one is the base year, then the inflation rate in year three is ________
A) 14.6%
B) 9.5%
C) 9.9%
D) 11.5%
E) 16.5%
B
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The size of the marginal propensity to consume determines the size of
a. government spending in the economy. b. the multiplier. c. planned investment in the economy. d. None of these.
If the government wanted to reduce the quantity of a good traded, it could do so by: a. setting a price ceiling for the good below the equilibrium price. b. setting a price floor for the good above the equilibrium price. c. taxing the good more heavily
d. doing any of the above.
A tax cut
A. Indirectly increases the disposable income of consumers. B. Contains less fiscal stimulus than an increase in government spending of the same size. C. Shifts the AD curve to the left. D. Directly decreases the disposable income of consumers.
Real, rather than nominal, figures are important to use when making comparisons of incomes across time periods because
What will be an ideal response?