Increases in inflation redistribute resources from ________-spending to ________-spending households and hence, ________ short-run equilibrium output.
A. low; high; increase
B. low; high; decrease
C. high; low; increase
D. high; low; decrease
Answer: D
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Which of the following would increase GNP in the United States?
A) an increase in the production of Japanese-owned Toyota cars in the U.S. B) an increase in the production of Japanese-owned Toyota cars in Mexico C) an increase in the production of Mexican-owned Grupo Minsa corn in the U.S. D) an increase in the production of U.S.-owned General Motors cars made in Mexico
________________, which produced ______________, is commonly cited as the first American factory
a. The Oliver Evans Mill; flour b. The Almy, Slater, Brown Mill; yarn and thread c. The Boston Manufacturing Company; cotton d. The Whitney Armaments Firm; guns
A consumer makes purchases of an existing product X such that the marginal utility is 10 and the price is $5. The consumer also tries a new product Y and at the current level of consumption it has a marginal utility of 8 and a price of $1. The utility-maximizing rule suggests that this consumer should:
A. Increase consumption of product X and decrease consumption of product Y B. Increase consumption of product X and increase consumption of product Y C. Increase consumption of product Y and decrease consumption of product X D. Decrease consumption of product Y and decrease consumption of product X
A monopolist faces a demand curve that
A) is perfectly horizontal at the market price. B) is below the marginal revenue curve. C) is downward sloping. D) coincides with the industry supply.