When the Fed purchases government bonds it _____ reserves and ____ the money supply.

A business organization that employs resources to produce goods and services for profit is

A) economic rent. B) a firm. C) inside information. D) the opportunity cost of capital.

The GDP deflator provides a measure of which of the following?

A) the ratio of GDP to the size of the population B) the ratio of GDP to the number of workers employed C) the ratio of nominal GDP to real GDP D) the price of a typical consumer's basket of goods E) real GDP divided by the aggregate price level