An inflation rate of 5% between 2017 and 2018 would be implied by a change in the GDP deflator from ________ in 2017 to ________ in 2018

If firms find that consumers are purchasing more than expected, which of the following would you expect?

A) The economy will adjust to macroeconomic equilibrium as inventories fall, and production and employment fall. B) Aggregate expenditure will likely be greater than GDP. C) Aggregate expenditure will likely be less than GDP. D) The economy will adjust to macroeconomic equilibrium as inventories rise, and production and employment fall.

Compared to higher-income families, low-income families would demand proportionately more of which of the following kinds of goods?

a. Luxury goods. b. Substitute goods. c. Normal goods. d. Inferior goods.