Assume that a combination of 10 bottles of wine and 2 cartons of milk lies on a consumer's budget constraint. If the price of one bottle of wine is $10, and one carton of milk is $1, what is the consumer's income?
A) $100
B) $20
C) $120
D) $102
D
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If the velocity of money is constant, then
A) a change in nominal GDP can be caused only by a change in the money supply. B) a change in the money supply can be caused only by a change in the price level. C) a change in the money supply is negatively related to a change in nominal GDP. D) a change in the money supply would result in no change in nominal GDP.
If GDP calculations included measurements of pollution and environmental damage, GDP values would most likely be
A) unchanged from their values without these measurements. B) meaningless, since GDP values without these measurements would no longer be of value. C) greater than their values without these measurements. D) less than their values without these measurements.