If we want to use a measure of inflation that foreshadows price changes before they affect prices at the retail level, we would base our measure of inflation on
A) the household price index. B) the GDP deflator.
C) the producer price index. D) the consumer price index.
C
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Explain why international trade is less important to the United States than it is to many other countries
What will be an ideal response?
Productive efficiency implies that
A) all consumers' wants are satisfied. B) no advance in technology will occur in the future. C) the attainable region is greater than the unattainable region. D) gains are impossible in one area without losses in another. E) all of the above
If the government adopts expansionary monetary policy during a recession, ________
A) tax rates increase B) government spending falls C) access to credit increases D) interest rates increase
The Keynesian consumption function implies that at a given moment persons with high incomes are saving ________ persons with low incomes, a prediction which is ________ by actual cross-section consumption data
A) a lower fraction of income than, confirmed B) a lower fraction of income than, not confirmed C) a higher fraction of income than, confirmed D) a higher fraction of income than, not confirmed E) the same fraction of income as, confirmed