Cost-push inflation is
A) inflation caused by decreases in aggregate supply that generate an even larger decrease in aggregate demand.
B) inflation caused by increases in aggregate demand that are not matched by increases in aggregate supply.
C) inflation caused by increases in aggregate demand that generate an even larger increase in aggregate supply.
D) inflation caused by decreases in aggregate supply that are not matched by decreases in aggregate demand.
D
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At the best affordable point, consumers equate their marginal rates of substitution to
A) their money income. B) their real income. C) relative prices. D) relative quantities.
Explain why economists today tend to favor a comprehensive personal consumption tax
What will be an ideal response?
An explicit cost is defined as
A) a nonmonetary accounting cost. B) a cost that involves spending money. C) a nonmonetary opportunity cost. D) a cost that does not change as output changes.
If the government levies a $500 tax per car on sellers of cars, then the price received by sellers of cars would
a. decrease by less than $500. b. decrease by exactly $500. c. decrease by more than $500. d. increase by an indeterminate amount.