The term "relative price" is used to refer to how the current price of a good or service compares to the price of the same item in the previous time period
Indicate whether the statement is true or false
FALSE
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Which of the following examples shows equilibrium price in practice?
a. Nostalgia Gifts, Inc sells 60 percent of their snow globes for $10 each and then sell the rest for $5 each. b. Nostalgia Gifts, Inc sells all their snow globes for $10 each, but consumers demand more. c. Nostalgia Gifts, Inc sells 80 percent of their snow globes for $10 each without consumers demanding more. d. Nostalgia Gifts, Inc sells all their snow globes for $10 each without consumers demanding more.
An example of a public good would be
A. a plane ride from Miami to Dallas. B. flood control protection from a government authority. C. a commuter's trip to work by car from Berkeley to Chicago. D. a bus ride from Phoenix to Los Angeles.
All of the following are part of the "regulation of health insurance" provision of the Patient Protection and Affordable Care Act (ACA) except
A) limits on the size of deductibles and on waiting periods before coverage takes effect have been eliminated. B) lifetime dollar maximums on coverage are prohibited. C) all policies must provide coverage for dependant children up to age 26. D) individuals with pre-existing medical conditions are able to acquire health insurance.
Refer to Figure 12.1. Suppose the economy is initially at full employment with real GDP equal to potential GDP, and the expected inflation rate equal to the actual inflation rate
If the economy then experiences a negative demand shock, and the Fed responds to the results of the demand shock with an appropriate monetary policy, the Fed response will A) push the economy further down the Phillips curve, lowering the inflation rate further. B) push the economy back up the Phillips curve, raising the inflation rate towards its full-employment level. C) push the economy back down the Phillips curve, lowering the inflation rate towards its full-employment level. D) push the economy further up the Phillips curve, lowering the inflation rate further.