An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
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Since sunk costs are incurred no matter what:
A. they are relevant in deciding how much to produce. B. they are essential in the profit-maximizing sales quantity formula. C. they can generally be ignored in making economic decisions. D. they are considered fixed costs.
Special tax treatment given to specific types of behavior are called
a. tax avoidance. b. tax evasion. c. tax loopholes. d. tax burden.
Which scenario shows how money functions as a means of deferred payment?
a. Lorelai knows that a peach costs $0.50 and a latte costs $5, so a latte is equal to 10 peaches. b. Darius puts money into a savings account and uses it to pay for a vacation at the end of the year. c. Julio gives Patrick $5 and Patrick gives Julio a sandwich in exchange. d. Every month, Candace sends a check for $300 to the company that services her student loans.
Price discrimination occurs when a firm sells
A. a given product at different prices to different ethnic groups. B. a given product at different prices when it is produced in different colors. C. a given product at different prices unrelated to differences in cost. D. a given product at different prices at different points in time.