Suppose that in 2010, the producer price index increases by 1.5 percent. As a result, economists most likely will predict that
a. GDP will increase in 2011.
b. the producer price index will increase by more than 1.5 percent in 2011.
c. interest rates will decrease in the future.
d. the consumer price index will increase in the future.
d
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Someone who knows nothing about the relative quality of a $2 toothbrush and a $7 toothbrush, both available for sale, but chooses to buy the more expensive one, is probably
A) displaying an inelastic demand for toothbrushes. B) judging quality by price. C) violating the law of demand. D) wealthy enough not to care about prices.
Are all externalities negative? Explain
What will be an ideal response?
If actual inflation differs from expected inflation, what is the slope of the Phillips curve?
A. The slope is horizontal in the short and long run. B. The slope is upward sloping in the short run and vertical in the long run. C. The slope is vertical in the short run and upward sloping in the long run. D. The slope is downward sloping in the short run and vertical in the long run.
Which of the following factors would decrease investment demand?
A. A decrease in business taxes
B. An increase in the cost of acquiring capital goods
C. An increase in the rate of technological change
D. A decrease in the stock of capital goods on hand