Inflation that is caused by an increase in aggregate demand without any change in aggregate supply is called
A) demand-push inflation. B) cost-pull inflation.
C) cost-push inflation. D) demand-pull inflation.
D
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Marginal cost is defined as the change in ________ cost when output changes by one unit. In the short run, marginal cost can also be measured by the change in ________ cost when output changes by one unit
A) total; fixed B) variable; fixed C) fixed; variable D) total; variable
Supply-side economists argued that, given existing tax laws, the high inflation of the 1970s
a. lowered the effective tax rate on corporate income. b. did not have any effect on the aggregate supply curve. c. raised the effective tax rate on corporate income. d. may have raised but probably lowered the effective tax rate on corporate income. e. both b and c.
Economic goods are
A) abundant goods, about which we must constantly make decisions about their best use. B) all imaginable items from which individuals derive satisfaction or happiness. C) goods that are scarce, for which the quantity demanded exceeds the quantity supplied at a zero price. D) goods that are scarce, for which the quantity demanded exceeds the quantity supplied at any price.
You turn to the bond market page of a newspaper and look under the column headed "Net Chg" and see that it says, "-1/4" this indicates that
A) the closing price for the bond on this particular day was $2.50 lower than on the previous day. B) the closing price for the bond on this particular day is $0.25 lower than on the previous day. C) the yield for the bond has fallen by 0.25% compared to the previous day. D) the yield for the bond has fallen by 0.25% compared to exactly one year ago.