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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The Long-run average total cost:
A. will rise if there are economies of scale B. assumes all inputs are variable C. will fall under the assumption of diseconomies of scale D. will be a flat line if there are economies of scale
A foreign exchange intervention that alters the domestic monetary base is:
A. impossible. B. not likely to change domestic interest rates. C. sterilized. D. unsterilized.
A patent is a barrier to entry
A. that grants exclusive use of an invented product or process to the inventor. B. that only allows use of an invented product or process to other companies within the industry. C. that allows use of an invented product or process by everyone. D. that grants exclusive use of an invented product or process to the government.
If the economy is in long-run equilibrium:
A. current inflation should be less than expected inflation. B. current inflation should equal expected inflation. C. inflation should be accelerating. D. current output should be greater than potential output.