A situation in which output decreases while prices increase is often referred to as:
A. inflation.
B. negative economic growth.
C. a recession.
D. stagflation.
Answer: D
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"No country is abundant in everything." Discuss
What will be an ideal response?
In the IS curve, if Y falls for any given level of the real interest rate ________
A) consumption decreases B) output increases C) saving increases D) all of the above E) none of the above
If Freedonia changes its laws to allow international trade in software and the world price is lower than its domestic price, then it must be the case that
a. both consumer surplus and producer surplus increase. b. consumer surplus increases and producer surplus decreases. c. consumer surplus decreases and producer surplus increases. d. both consumer surplus and producer surplus decrease.
List the factors that influence supply. How does a change in each of the factors you have listed affect the supply curve?
What will be an ideal response?