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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According to the law of supply:
a. more of a good is desired by consumers as the price falls. b. less of a good is desired by consumers as the price rises. c. more of a good will be offered by suppliers as the price rises. d. less of a good will be offered by suppliers as the price rises.
Which of the following is most likely to increase the incentive to invest, produce, and employ others?
What will be an ideal response?
An indifference curve shows the various consumption bundles that result in the same level of well-being for an individual.
Answer the following statement true (T) or false (F)
If an employer currently finds that the MRP of its labor resources equals $67, and the MFC equals $56, what would you advise the firm to do?
A. Stay at its current output level. B. Hire additional workers. C. Raise product prices. D. Reduce employment.