Changes in relative prices may occur
A. Only in periods of stable prices.
B. In periods of stable prices or in periods of inflation or deflation.
C. Only in periods of inflation or deflation.
D. In none of the other choices.
Answer: B
You might also like to view...
State legislators who wanted to eliminate state regulation of the trucking industry would be most likely to find support among
A) business owners who must pay higher prices for deliveries as a result of the regulations. B) owners and managers of large trucking concerns. C) owners of small trucking concerns. D) unions that represent truck drivers.
The Fed can close a recessionary gap by:
a. increasing fiscal expenditure b. increasing taxes. c. decreasing taxes. d. selling U.S. government bonds. e. lowering the discount rate.
According to the short-run Phillips curve, inflation
a. and unemployment would fall if the policymakers decreased the money supply. b. would fall and unemployment would rise if policymakers decreased the money supply. c. and unemployment would fall if the policymakers increased the money supply. d. would fall and unemployment would rise if policymakers increased the money supply.
Bob is unemployed because his skills have become obsolete due to technological advances. This is ____ unemployment.
A. frictional B. structural C. cyclical D. seasonal