You are likely to think that the relative price of your good has risen and you should increase your output if you expected
A. the inflation rate to be 10% and the price of your good rose 13%.
B. the inflation rate to be 10% and the price of your good rose 10%.
C. the inflation rate to be 0% and the price of your good fell 10%.
D. the inflation rate to be 10% and the price of your good rose 7%.
Answer: A
You might also like to view...
Refer to the figure below. Assume demand remains unchanged at D1. If supply shifts from S2 to S1, then the equilibrium price will ________ and the equilibrium quantity will ________. 
A. rise; rise B. rise; fall C. fall; fall D. fall; rise
A firm's profits will be greatest when it practices:
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) no price discrimination.
Any combination of goods beyond the budget line is not feasible
a. True b. False Indicate whether the statement is true or false
Assuming the economy is represented by the graph shown, if the government were to enact a partially successful expansionary fiscal policy, it would be most likely to move from equilibrium:
A. A to B.
B. B to A.
C. D to C.
D. D to B.