A GDP deflator of 112 means:
A. the overall price level is 12 percent higher than in the base year.
B. the overall output increased by 12 percent since the base year.
C. every price in the economy has gone up by 12 percent.
D. the production of each good in the economy has increased by 12 percent.
A. the overall price level is 12 percent higher than in the base year.
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Which of the following statements is true?
A) Macroeconomics studies how individuals make choices. B) Microeconomics is the study of an economy as a whole. C) The study of the inflation rate is covered under microeconomics. D) The study of the unemployment rate is covered under macroeconomics.
If you hold a bond at a time when market interest rates are increasing, you will find that the bond's value has
a. remained the same since the interest payment remains constant b. increased c. increased only if the market interest rate exceeds the interest rate payable on the bond d. declined because you will receive a lower price when you sell the bond e. increased only if the interest payable on the bond exceeds the market interest rate