In the model of aggregate demand and aggregate supply, the GDP deflator measures the
a) price of oil.
b) average price level.
c) nominal interest rate.
d) amount of real output.
Ans: b) average price level
You might also like to view...
Which of the following statements is true?
A) If the domestic price of a good in a country is higher than the world price, the country will become an exporter of the good. B) Whether a country becomes an importer or an exporter of a good depends only on the domestic price of the good and is independent of the world price of the good. C) If the domestic price of a good in a country is higher than the world price, the country will become an importer of the good. D) Whether a country becomes an importer or an exporter of a good depends only on the world price of the good and is independent of the domestic price of the good.
Changes in stock prices
A) do not affect people's wealth and their willingness to spend. B) affect firms' decisions to sell stock to finance investment spending. C) occur in regular patterns. D) are unimportant to decision makers.