The fact that nominal GDP has risen faster than real GDP:
A. suggests that the base year of the GDP price index has been shifted.
B. tells us nothing about what has happened to the price level.
C. suggests that the general price level has fallen.
D. suggests that the general price level has risen.
D. suggests that the general price level has risen.
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If a currency is allowed to move freely until it violates economic fundamentals, that currency is said to have
A) a managed float. B) a free floating system. C) a currency board. D) a stable basket.
The expression, "There's no such thing as a free lunch," implies that
a. everyone has to pay for his own lunch. b. the person consuming a good must always pay for it. c. opportunity costs are incurred when resources are used to produce goods and services. d. no one has time for a good lunch anymore.
Which type of legislation has widespread benefits and widespread costs?
a. traditional public-goods b. special interest c. populist d. competing interest
For a given level of inflation, if a resolution of international disputes leads to a cutback in government military spending, then the ________ shifts ________.
A. short-run aggregate supply line; downward B. short-run aggregate supply line; upward C. aggregate demand curve; left D. aggregate demand curve; right