In order to create an index for consumer prices, the BLS chose
A. 1 to represent the average 1982-1984 price level.
B. 100 to represent the average 1982-1984 price level.
C. 1 to represent the average 1952-1954 price level.
D. 100 to represent the average 1952-1954 price level.
Answer: B
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Which of the following is true?
a. Keynesians advocate increasing the money supply during economic recessions but decreasing the money supply during economic expansions. b. Monetarists advocate increasing the money supply by a constant rate year after year. c. Keynesians argue that the crowding-out effect is rather insignificant. d. Monetarists argue that the crowding-out effect is rather large. e. All of these.
Suppose the Phillips curve is represented by the following equation: ?t - ?t-1 = 20 - 2ut. Given this information, which of the following is most likely to occur if the actual unemployment in any period is equal to 6%?
A) the rate of inflation will tend to increase B) the rate of inflation will be constant C) the rate of inflation will tend to decrease D) none of the above
Markets are best defined as
A) arrangements where buyers and sellers get together to buy and sell. B) specific geographic locations where people get together to buy and sell. C) hypothetical constructs used to analyze how people form their tastes and preferences. D) places where people can inspect goods and services carefully.
As the price level falls and other things remain the same, real wealth ________ and ________
A) decreases; the short-run aggregate supply decreases B) decreases; the quantity of real GDP demanded decreases C) increases; aggregate demand increases D) increases; the quantity of real GDP demanded increases