Suppose the GDP implicit price deflator was 112.7 in 2013 and 116.0 in 2014. Therefore, the inflation rate in 2014 would be
A) 2.8%.
B) 2.9%.
C) 3.3%.
D) 16%.
B
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Use the following diagram to answer the next question.
Which of the following would cause a move from MS1 to MS3?
A. The banking system decides to hold less excess reserves and make more loans. B. The reserve requirement is reduced by the Board of Governors. C. The Federal Open Market Committee decides to sell bonds. D. The discount rate is decreased by the regional Federal Reserve banks.
The point of diminishing returns means that output will decrease at an increasing rate
Indicate whether the statement is true or false
Unpredictable changes in the value of money, which brings about gains and losses, are a consequence of unpredictable changes in
A) real GDP. B) unemployment rate. C) inflation. D) productivity.
Factors of production are
a. used to produce goods and services. b. also called output. c. abundant in most economies. d. assumed to be owned by firms in the circular-flow diagram.