The values of variables such as GDP expressed in current dollars are referred to as
A. the price index.
B. real values.
C. nominal values.
D. a deflator.
Answer: C
You might also like to view...
An economy where private individuals guided by the invisible hand make decisions is known as a:
A. market economy. B. centrally planned economy. C. socialist economy. D. barter economy.
Which requirement for perfect competition rules out trade associations or other collusive arrangements in which firms work together to influence price?
a. Freedom of entry and exit. b. Homogeneity of product. c. Perfect information. d. Numerous small firms and customers.
For a small open economy, assume that the marginal propensity to import is 0.3, and that interest rates, exchange rates, and the price level are all constant. If an increase of $10 billion in government spending results in an increase of $6 billion in imports, then
A. real domestic investment decreases by $4 billion. B. real gross domestic product (GDP) increases by $4 billion. C. taxes increase by $10 billion. D. the spending multiplier is 2.
Ramen noodles are a staple food item for many college students. Ramen noodles are very inexpensive, easy to prepare, and can be combined easily with other foods. After students graduate, find employment, and earn a higher income, they decrease their Ramen noodle purchases significantly. In this case, Ramen noodles are
A) a normal good. B) an inferior good. C) a complement for higher income people. D) a substitute good. E) None of the above answers is correct.