Over a period of time, a nation's GDP increases by 8 percent in constant-price terms, and by 6 percent in current-price terms. Other things being equal, the price level must have changed by about:
A.
14 percent
B.
4 percent
C.
2 percent
D.
-2 percent
D.
-2 percent
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Actions on the part of monetary and fiscal policy makers that are undertaken in response to some change in the overall economy are known as
A) creative policy making. B) passive policy making. C) active policy making. D) nondiscretionary policy making.
Shifts in the IS curve ________ the AD curve, and changes to the reaction function ________ the AD curve
A) cause a movement along; shift B) shift; cause a movement along C) temporarily shift; permanently shift D) permanently shift; temporarily shift
According to behavioral economics, if people taking an exam were asked to guess the score they would receive, it would be most likely that
a. significantly more people would score below what they guessed than above what they guessed. b. significantly more people would score above what they guessed than below what they guessed. c. about the same number of people would score more than they guessed as scored less than they guessed. d. people's scores would be pretty close to what they guessed.
The firms in a collusive oligopoly ______.
a. encourage new firms to enter their industry b. reduce uncertainty by acting collectively c. act independently of each other d. are long-lived thanks to antitrust laws