1. Deflating a nominal quantity is the process of dividing a ____ quantity by a ______ in order to express the quantity in ______ terms.
- real; price index; nominal
- real; nominal quantity; real
- nominal; nominal quantity; real
- nominal; price index; real
- nominal; real quantity; nominal
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Other questions in this quiz
2. In Macroland potential GDP equals €500 billion and real GDP equals €515 billion. Macroland has a(n) _________ gap equal to _____ percent of potential GDP.
- recessionary; -3
- expansionary; -3
- expansionary; -15
- expansionary; 3
- recessionary; 3
3. The two main responsibilities of the European Central Bank are to _____ and to ______.
- conduct monetary policy; oversee financial markets
- collect taxes; pay the government's expenses
- enable banks to make affordable mortgages; control the exchange rate of the Euro
- apprehend counterfeiters; regulate the stock market
- insure bank deposits; print currency
4. If consumption increases by €9 when after-tax disposable income increases by €10, the marginal propensity to consume equals:
5. The tendency of changes in asset prices to affect spending on consumption goods is called the _____ effect.