Which of the following statements is incorrect?
A. If you can buy the same goods this year as you bought last year with the same money there must have been deflation.
B. If you can buy the same goods this year as you purchased one year ago with the same amount of money, prices are stable.
C. If you can buy the same goods this year as you bought last year with less money there must have been deflation.
D. If purchasing the same goods today that were purchased one year ago requires more money, there must have been inflation.
Answer: A
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The quantity equation states that
A) M + V = P + Y. B) the money supply (M) divided by the velocity of money (V) equals the price level (P) divided by real output (Y), i.e., M/V = P/Y. C) M × V = P × Y. D) M - V = P - Y.
Expansionary fiscal policy includes an increase in government spending, a decrease in taxes or some combination of the two
Indicate whether the statement is true or false
It is spring, and several graduates of State U are seeking employment. State U graduates have evenly distributed GPAs, from 2.0 to 4.0, with an average GPA of 3.0. The largest employer in town, Acme Dynamite, is interviewing candidates, hoping to hire a few hard workers. While Acme does not require students to submit a transcript with their applications, the hiring officer believes that high GPAs signal a willingness to work hard. Gerry is a recent graduate if State U and is applying for a job with Acme. Gerry's GPA is 2.9. Should Gerry include a transcript with his job application?
A. No, because his GPA is worse than average. B. No, because Acme did not request it. C. Yes, because if he doesn't send a transcript, Acme will infer that Gerry is willing to work harder than he actually wants to work. D. Yes, because students with higher-than-average GPAs will always include a transcript, so if Gerry doesn't send a transcript, Acme will infer that Gerry's GPA is even lower than it is.
If taxes were a lump-sum amount, then the absolute value of the tax multiplier ________ it would be if taxes depend on income.
A. is equal to what B. is larger than C. is smaller than D. could be either larger than or smaller than