What starts a demand-pull inflation?
What will be an ideal response?
an increase in:
-the quantity of money
-government expenditures
-exports
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The base year is 2012. A country only produces Blu-ray players. The price of a Blu-ray player in 2012 was $100. The price of a Blu-ray player was $90 in 2013
The quantity of Blu-ray players produced in 2012 was 10,000 units and in 2013 was 10,500 units. Real GDP in 2012 equals A) $945,000. B) $1,000,000. C) $900,000. D) $1,050,000. E) an amount that cannot be determined without information about real GDP in 2007 .
What are the costs of inflation? Briefly explain each
What will be an ideal response?
Kelly's marginal utilities for magazines and packages of gummy bears are listed in the table above. What is the extra utility received by Kelly when she decides to consume 3 packages of gummy bears instead of 2 packages?
A) 20 B) 160 C) 180 D) 540
When observing people making choices that do not at first appear to be rational, an economist will ask,
a. "How might a psychologist explain this behavior?" b. "Why do we economists keep believing that people behave rationally?" c. "How might such behavior be serving someone's purposes?" d. "What is wrong with these people?"