Stagflation occurs when aggregate supply and aggregate demand both increase
Indicate whether the statement is true or false
FALSE
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The above figure shows the demand curve for movie rentals from Redbox. If Redbox lowered its price from $2.00 to $1.50, then total revenue would ________ because demand is ________
A) decrease; elastic B) increase; elastic C) decrease; inelastic D) increase; inelastic
The stable to declining quality of the labor force in the United States has been brought about by which of the following:
A. the increasing number of immigrants in the work force B. the decline in the quality of our education system C. the higher level of living D. the exodus of highly educated citizens
Jack recently took out a loan from Diane at an interest rate of 5 percent. Diane expected this year's inflation rate to be 2 percent and the real interest rate to be 3 percent. The loan is due at the end of this year. Complete the table below by computing the real interest rate for each possible inflation rate. For each situation, determine whether the unexpected inflation level benefits Jack or Diane.
What will be an ideal response?
Consumer loyalty tends to be very low in markets such as cola drinks and tobacco products
a. True b. False Indicate whether the statement is true or false