If you want to deflate the current price of something to eliminate the effect of inflation,
a. divide the number by the price index.
b. multiply the number by the price index.
c. multiply the number by 2 and then divide by the price index.
d. multiply the number by the price index and then divide by 2.
a. divide the number by the price index.
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Suppose we observe rising nominal GDP, a rising price level, and constant unemployment as a result of an increase in aggregate demand. We would conclude that the aggregate supply curve is
A) upward sloping. B) downward sloping. C) vertical. D) horizontal.
The incentive structure is a
A) system of rewards and punishments that individuals consider when making decisions. B) system determined by the federal government that gives certain states more federal funds. C) system of infrastructure in the United States that improves commerce. D) system of checks and balances in the government.