A dramatic and sustained increase in oil prices would most likely:
a. increase demand-pull inflation.
b. decrease demand-pull inflation.
c. increase cost-push inflation.
d. decrease cost-push inflation.
c
You might also like to view...
"The duopolists' dilemma occurs when firms in a duopoly coordinate their decisions to achieve the best possible outcome." Is the previous statement correct or incorrect? Why?
What will be an ideal response?
Refer to Figure 7-5. The efficient quantity of medical services is
A) 400. B) 800. C) 1,200. D) > 1,200.
Suppose the market for good X has a four-firm concentration ratio of 0.50. Furthermore, assume that total sales in the industry are $1.2 million. Based on this information, we know that sales for the largest four firms in the industry equal (in aggregate):
A. $2,400,000. B. $240,000. C. $600,000. D. $60,000.
An unregulated pure monopolist will maximize profits by producing that output at which:
A. P = MC. B. P = ATC. C. MR = MC. D. MC = AC.