How is real GDP calculated?
What will be an ideal response?
The traditional method of calculating real GDP is to value each year's production using the constant prices of a fixed base year and then sum all the values.
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A fall in the price level produces a ________ the aggregate demand curve
A) change in the slope of B) movement downward along C) leftward shift of D) rightward shift of E) movement upward along
Which of the following is NOT among the statements that critics of prospect theory have made about it?
A. It is not necessary, since expected utility theory accounts rather well for most risky choices. B. The evidence reflects systematic mistakes that consumers might correct through experience and awareness. C. Instead of explaining behavioral puzzles, prospect theory merely summarizes them. D. Loss aversion has been proven to be false in many theoretical and experimental economic works.