Is inflation a macroeconomic or a microeconomic question? Why?
What will be an ideal response?
Inflation is a macroeconomic question because it deals with an economy-wide phenomenon. The price increase of a specific product, such as gasoline, would be a microeconomic matter. Since inflation deals with prices in the economy as a whole, it is a macroeconomic concern.
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The satisfaction a person receives from consuming goods and services is called
A) contentment. B) wealth. C) utility. D) psychic income.
What could happen to render the price ceiling set in the graph shown non-binding?
A. Demand could increase, and shift to the right.
B. Demand could decrease, and shift to the left.
C. Supply could decrease, and shift to the left.
D. None of these would cause the price ceiling to be non-binding.
The takeover process does not use up capital; it merely redistributes it
a. True b. False Indicate whether the statement is true or false
If households decrease the amount of bank account withdrawals, the consumption function may shift upward.
Answer the following statement true (T) or false (F)