Real income equals a household's income
A) in terms of the quantity of goods the household can buy.
B) multiplied by the prices of the goods it buys.
C) divided by the prices of the goods it buys.
D) multiplied by the relative prices of the goods it buys.
A
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Government debt is different from individual debt because
A) the government can always tax to reduce it. B) the government cannot declare bankruptcy. C) the government does not need to pay interest. D) the government can decide the interest rate.
Suppose we observe an economy experiencing an economic expansion and high inflation. This means the expansion is attributed to
a. an anticipated increase in aggregate demand. b. an increase in long-run aggregate supply. c. an unanticipated decrease in aggregate demand. d. an unanticipated decrease in aggregate supply.