Inflation represents
A) an increase in output.
B) an increase in the aggregate price level.
C) an increase in the unemployment rate.
D) a recession.
B
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An increase in price will decrease demand.
Answer the following statement true (T) or false (F)
All of these could be sources of economies of scale except
a. Investment in more efficient technology b. Specialization c. A bottleneck procedure d. Discounts on bulk purchase of inputs
If an increase in price from $1.20 to $2 per unit leads to an increase in quantity supplied from 20 to 100 units,
a. demand is elastic b. demand is inelastic c. demand is unit elastic d. supply is elastic e. supply is inelastic
As a result of the housing market crash overall output fell, and prices:
A. decreased because the magnitude of shift was larger for aggregate demand than it was for aggregate supply. B. increased because the magnitude of shift was larger for aggregate demand than it was for aggregate supply. C. decreased because the magnitude of shift was smaller for aggregate demand than it was for aggregate supply. D. increased because the magnitude of shift was smaller for aggregate demand than it was for aggregate supply.