A Decrease in the Price of Large Tractors Imported into the United

question 122

Multiple Choice

A decrease in the price of large tractors imported into the United States from Russia

• A)leaves the GDP deflator unchanged but decreases the consumer price index.
• B)decreases the GDP deflator but leaves the consumer price index unchanged.
• C)decreases both the GDP deflator and the consumer price index.
• D)leaves both the GDP deflator and the consumer price index unchanged.

---

Definitions:

Mutual Benefit

An arrangement or action by which all parties involved gain or benefit, commonly used in contexts of legal agreements, business dealings, or cooperative efforts.

Free Market Ethics

Ethical principles that support or relate to the functioning of unregulated markets and the voluntary exchange between parties.

Milton Friedman

An influential American economist known for his advocacy of free markets, limited government, and a pioneering contributor to the fields of economics and statistics.

Social Responsibility

The idea that businesses should balance profit-making activities with activities that benefit society; it involves developing businesses with a positive relationship to the society in which they operate.