Real GDP =________ where the price level is the ________
A) Nominal GDP × Price level; GDP deflator
B) Nominal GDP ÷ Price level; GDP deflator
C) Nominal GDP ÷ Price level; CPI
D) Nominal GDP × Price level; CPI
E) none of the above
B
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According to the saving and investment equation, if net foreign investment falls by $35 million,
A) domestic investment will fall by $35 million. B) national savings will rise by $35 million. C) national saving in excess of domestic investment will rise by $35 million. D) national saving in excess of domestic investment will decrease by $35 million.
The public choice model can be used to examine voting models that contrast the manner in which collective decisions are made by governments (state, local, and federal) and the manner in which individual choices are made in markets
Which of the following descriptions is consistent with the difference between collective decision-making and decision-making in markets? A) Individuals are less likely to see their preferences represented in the outcomes of government policies than in the outcomes of markets. B) The cost of a government policy is determined by a majority vote of members of the public; decisions made in markets are based on individual willingness to pay. C) Choices made through government policies are more important than decisions individuals make through markets. D) Everyone who votes must agree with a decision made collectively through government, but in markets individuals can make their own choices.