A situation in which output decreases while prices increase is often referred to as:
A. inflation.
B. negative economic growth.
C. a recession.
D. stagflation.
Answer: D
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Which of the following pairs of goods are likely to be considered substitutes?
A) Coffee and sugar B) Printers and printing ink C) A Ford car and public transportation D) A Nokia cell phone and a Nokia cell phone charger
Which of the following would you expect to decrease both interest rates and exchange rates? (Assume exchange rates are stated in terms of foreign currency per domestic currency.)
A) contractionary monetary policy B) contractionary fiscal policy C) expansionary monetary policy D) Both B and C will decrease both interest rates and exchange rates.
A Japanese television sells for ¥100,000 and a dollar is equal to ¥100. What is the dollar price of the television?
A) $1000 B) $99,900 C) $10,000,000 D) $100,100
In a kinked demand market, whenever one firm decides to lower its price,
a. other firms will automatically follow. b. none of the other firms will follow. c. one half of the firms follow and one half of the firms don't follow the price cut. d. other firms all decide to exit the industry e. all of the other firms raise their prices.