This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A macroeconomic equilibrium occurs when the A) quantity of real GDP demanded is greater than the ... (Read 82 times)

tichca

  • Hero Member
  • *****
  • Posts: 554
on: Jun 29, 2018
A macroeconomic equilibrium occurs when the
 
  A) quantity of real GDP demanded is greater than the quantity of real GDP supplied.
  B) quantity of real GDP demanded equals the quantity of real GDP supplied and both equal potential GDP.
  C) quantity of real GDP demanded equals the quantity of real GDP supplied even if they are not equal to potential GDP.
  D) quantity of real GDP demanded is less than the quantity of real GDP supplied.
  E) None of the above answers is correct.

Question 2

The bias in the CPI distorts private contracts because a future payment that is linked to the CPI will be raised above the true increase in the price level. Is the previous sentence true or false?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

frejo

  • Sr. Member
  • ****
  • Posts: 349
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

The sentence is correct. The fact that the payments increase by more than the true increase in the price level means that one party to the contract benefits more, the higher the inflation rate.


tichca

  • Hero Member
  • *****
  • Posts: 554
Reply #2 on: Jun 29, 2018
Correct answers!


frejo

  • Sr. Member
  • ****
  • Posts: 349
Reply #3 on: Jun 29, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Vehicle transmission occurs through contamination of inanimate objects, such as milk. Vehicle transmission occurs through contamination of inanimate objects, such as milk.
Many electronic components are used to construct a typical vehicle computer. Notice the quantity of ... Many electronic components are used to construct a typical vehicle computer. Notice the quantity of ...
DOT placarding requirements: Table 1 materials must be placarded in any quantity, and Table 2 ... DOT placarding requirements: Table 1 materials must be placarded in any quantity, and Table 2 ...
Prove that each of the following real functions f has a discontinuity. For each function, ... Prove that each of the following real functions f has a discontinuity. For each function, ...
The TaqMan approach to quantitative real-time PCR (qPCR) The TaqMan approach to quantitative real-time PCR (qPCR)
Postreplication repair occurs if DNA replication Postreplication repair occurs if DNA replication
Video: Introduction to Diabetes

For a complete list of videos, visit our video library