Which of the following is consistent with secular deflation?
A) a persistently decreasing price level caused by money being withdrawn from the economy
B) a persistently increasing price level caused by several periods of economic growth with decreasing AD
C) a persistently decreasing price level caused by increases in government expenditures
D) a persistently decreasing price level caused by several periods of economic growth with stable AD
D
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The United States economy ______________ operates on its production possibility curve.
A. Always B. Sometimes C. Never
The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. Based on the data in the table, production of fertilizer has
A) external benefits. B) external costs. C) no externalities. D) constant returns to scale.
Social Security payments:
A. began to be indexed to inflation in 1975. B. are now indexed using the PPI. C. are not adjusted using COLAs. D. began to be adjusted to 5% above the poverty line in 1987.
Which of the following is not included in either M1 or M2?
a. U.S. Treasury bills b. small time deposits c. demand deposits d. money market mutual funds