Which of the following is true of inflation?
a. It is an increase in the general price level of goods and services.
b. The purchasing power of money increases as the result of inflation.
c. Inflation is similar to interest payments on future money income, such as pensions and receipts from outstanding loans.
d. Inflation has no effect on real income.
a
You might also like to view...
Starting from long-run equilibrium, a sharp drop in oil prices results in ________ output in the short run and ________ output in the long run.
A. lower; higher B. lower; potential C. higher; higher D. higher; potential
Use the above table. The autonomous consumption in this table is
A) $0. B) $20. C) $50. D) $140.
Which of the following shifts both the short-run aggregate supply curve and the long-run aggregate supply curve?
I. changes in the size of the labor force II. changes in the money wage rate III. changes in the quantity of capital A) II only B) both I and II C) both I and III D) I, II and III
Figure 7.1 shows the U-shaped cost curves for a producer. In the table figure, A is the marginal cost curve, B is the average variable cost curve, and C is the average total cost curve. At an output of 10, the:
a. ?fixed cost equals $10. b. ?total cost equals $10. c. ?fixed cost equals $1. d. ?marginal cost equals $10. e. ?variable cost equals $10.