Reference no: EM1346068
The the following questions Answer each question in 1 or 2 paragraphs.
1. Illustrate why does the GDP deflator give a different rate of inflation than does the CPI?
2. Illustrate what is the difference between a medium of exchange and a store of value?
3. Suppose that consumers expect that a recession is coming.
Explain how this could be a self-fulfilling prophecy.Think about how consumers will change their consumption decisions. Answer the following in 1 to 4 sentences.
1. Why doesnt the purchase of an automobile from japan increase the U.S. GDP, since its counted as consumption?
2. What are the factors that determine labor productivity?
3. If the investment tax credit were increased, what would happen to interest rates and investments?
4. What is the evidence as to the success of unions in raising the wages for their numbers?
5. Are credit cards considered to be money?
6. What is the classical dichotomy?
7. What is meant by the term net capital outflow?
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