Which of the following does a price index typically measure?
a. the change in the money supply
b. the change in price of a good or service
c. the change in the price of a bundle of goods and services
d. the change in relative price of a good or service
c. the change in the price of a bundle of goods and services
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Professor Cowen says that fiscal policy would make more sense if we:
A. relied more heavily on tax cuts than we currently do for fiscal policy. B. ran government budget deficits in years in which the unemployment rate was high. C. used a combination of tax cuts and increases in government spending. D. actually had government budget surpluses in years in which the economy was in good health.
Last year, the nominal interest rate was less than the anticipated rate of inflation
A) This means that not enough loans were made by banks. B) This means that the real interest rate was negative. C) This means that the real interest rate was very high. D) This scenario is not possible.