What is the crucial difference between inflation generated on the demand side versus inflation generated on the supply side?
a. Demand-side inflation is short-lived, while supply-side inflation lasts for a long time.
b. Demand-side inflation leads to budget surpluses, while supply-side inflation contributes to budget deficits.
c. Supply-side inflation is subject to control of policy makers, while demand-side inflation is beyond their reach.
d. Demand-side inflation is normally accompanied by rising real GDP, while supply-side inflation may be accompanied by falling real GDP.
d
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A firm's total cost in the short run is the sum of its fixed cost plus its variable cost plus its marginal cost
Indicate whether the statement is true or false
A black market may arise when government imposes a price ceiling
a. True b. False Indicate whether the statement is true or false
Which of the following is a true measure of national output?
A. GNP at market price B. Nominal GNP C. GDP in future dollars D. GDP using base-year prices
Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. If MR = $7, then a profit-maximizing firm will produce ________ units and earn a profit of ________.
A. 7; $0 B. 15; $30 C. 13; $0 D. 13; $91