Which statement is true?
A. Cost-push inflation may be summed up as "too many dollars chasing too few goods".
B. Profit-push inflation is a variant of demand-pull inflation.
C. Demand-pull inflation usually happens during wars.
D. The wage-price spiral is the basic cause of demand-pull inflation.
C. Demand-pull inflation usually happens during wars.
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La Super Rica is a taco stand in Santa Barbara, California. It is popular with the locals and even the late Julia Child found the food delicious
If La Super Rica is currently producing where marginal revenue is greater than marginal cost, to increase its profit La Super Rica should A) increase production. B) decrease production. C) not change its production because it is maximizing its profit. D) Not enough information is given to determine what La Super Rica should do.
Other things being equal, a decrease in the workplace amenities, such as decreased health care and less generous vacation options, would tend to shift the labor supply curve to the ____, thereby causing the market wages to ____
a. right; fall b. right; increase c. left; fall d. left; rise
If, in the long run, people adjust their price expectation so that all prices and incomes move proportionately to an increase in the price level, then the long-run Phillips curve is vertical.
Answer the following statement true (T) or false (F)
In which of the following conditions is the inflation rate likely to fall and the unemployment rate likely to rise?
A. hyperinflation B. stagflation C. recession D. boom