If a particular measure of real GDP consistently underestimates ...

[kamilo84]

If a particular measure of real GDP consistently underestimates growth in real GDP, then the rate of inflation as measured by the GDP deflator
 
  A) will be biased upward.
  B) will be biased downward.
  C) will be unbiased.
  D) cannot be calculated.

Question 2

In the New Keynesian model, if there is a decrease in anticipated future total factor productivity, then
 
  A) there should be no change in monetary or fiscal policy.
  B) the central bank's interest rate target should be increased.
  C) government spending should fall, and the central bank's interest rate target should rise.
  D) government spending should increase.

[Danny Ewald]

Answer to Question 1

A

Answer to Question 2

D

[kamilo84]

TYSM

[diana chang]

Excellent