When your textbook says that it is misleading to say that the market economy produces an aggregate GDP-measured "economic pie," the authors have the following claim in mind:
A) Unlike a pie, income in the economy can't be divvied out independent of the exchange process.
B) The economy produces more than just pies.
C) The "pie" metaphor focuses solely on real GDP and excludes the more important measure of nominal GDP.
D) The production of pies create no income opportunities for market participants.
A
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When individuals make decisions about how much money and bonds to hold, which of the following variables affects those decisions?
A) the real interest rate only B) the nominal interest rate only C) the expected inflation rate only D) either the real interest rate or the expected inflation rate E) both the nominal and real interest rates
A difference between economic regulation and social regulation is that
A) the former tends to affect the prices at which products are sold and the latter does not. B) the former tends to affect the profits of firms and the latter does not. C) the former tends to be specific to an industry and the latter tends to affect firms in all industries. D) the former tends to be done at the state level and the latter at the federal level.