Demand-side inflation is normally accompanied by
A. falling real GDP, while supply-side inflation may be accompanied by rising real GDP.
B. falling real GDP; the same is true of supply-side inflation.
C. rising real GDP, while supply-side inflation may be accompanied by falling real GDP.
D. rising real GDP; the same is true of supply-side inflation.
Answer: C
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In the leisure-income model, taxing income causes
A. the budget constraint to kink. B. males to work to change their work habits dramatically. C. utility to increase. D. all of these answer options are correct.
When a firm charges each customer the maximum price that the customer is willing to pay, the firm
A) engages in a discrete pricing strategy. B) charges the average reservation price. C) engages in second-degree price discrimination. D) engages in first-degree price discrimination.
Economists believe that people are:
A. generally risk-seekers. B. generally risk-averse. C. always risk-averse. D. always risk-seekers.
If the velocity of circulation is 10 and the money supply is $250, the value of transactions will be $25.
Answer the following statement true (T) or false (F)