One of the distinguishing differences between periods of low inflation and periods of high inflation is that
A. low inflation periods are short lived.
B. high inflation periods are short lived.
C. high inflation periods are long lived.
D. low inflation leads to high inflation.
Answer: B
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A firm sells 1000 units per week. It charges $70 per unit, the average variable costs are $25, and the average costs are $65 . At what price would the firm consider shutting down in the short run?
a. $10 b. $25 c. $65 d. $70
According to the theory of liquidity preference, if output decreases
a. people want to hold more money. This response is shown as a movement along the money demand curve. b. people want to hold more money. This response is shown as a shift of the money demand curve. c. people want to hold less money. This response is shown as a movement along the money demand curve. d. people want to hold less money. This response is shown as a shift of the money demand curve.
Economic capital refers to:
What will be an ideal response?
The quantity theory of money:
A. provides a comprehensive explanation of inflation. B. explains low inflation rates well but does not explain high inflation rates well. C. does not explain inflation in the real world at all. D. explains high inflation rates well but does not explain low inflation rates well.