Cost-push inflation occurs when the factor contributing most to rising prices is increased demand for goods and services
Indicate whether the statement is true or false
F
You might also like to view...
The four categories of final users of GDP are:
A. businesses, firms, governments, and the foreign sector. B. households, firms, governments, and the foreign sector. C. businesses, corporations, firms, and farms. D. households, the Federal Reserve, governments, and the foreign sector.
An increase in the price of labor will, in the short-run, cause a competitive firm's
a. marginal cost to increase, the quantity it sells to decrease and therefore reduce the quantity demand of labor. b. price of its output to increase, leaving demand for labor unchanged. c. marginal revenue product of labor to decrease and therefore reduce demand for labor. d. marginal revenue product of labor to increase and therefore increase demand for labor.
In a period of hyperinflation, the velocity of circulation increases because
A) the real interest rate rises. B) households and firms spend money as soon as they receive payment. C) the nominal interest rate decreases. D) money is valuable everyone wants it. E) potential GDP increases.
Refer to Figure 22-4. Suppose the per-worker production function in the figure above represents the production function for the U.S. economy
If the United States decided to cut its support of university research in half, this would cause a movement from A) B to D. B) B to E. C) B to C. D) B to A.