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Economists adjust for inflation using the GDP deflator
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- If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then productivity a. and real GDP per person rise. b. rises but real GDP per person falls. c. falls and real GDP per person rises. d. and real GDP per person fall.
- Many economists believe that the growth of the money supply isA.inversely related to the price level.B.directly related to interest rate growth.C.not related to output growth.D.positively related to the growth of real GDP.
- Which of the following statements is false?A. Economists who believe that the economy is self-regulating advocate for a great deal of government intervention to help push the economy toward long-run equilibrium.B. Classical economists believed that wages, prices, and interest rates are flexible.C. Economists who believe that the economy is self-regulating advocate for a macroeconomic policy of laissez-faire.D. Classical economists believed that Say's law holds in a money economy.