If you made a wish list of things you wanted but did not now have, they you became able to have the things on that list, scarcity would be eliminated

The product of nominal GDP and the GDP deflator equals the real GDP of a country

a. True b. False Indicate whether the statement is true or false

Which of the following examples shows an imperfect information problem with monetary policy?

a. After the government sells bonds, many foreign banks increase their interest rates. b. After the government increases spending, business confidence in investing increases. c. The government implements a tax cut after the Fed decreases the money supply. d. The government’s estimate of MPC is 20 percent too low.