For deflation to occur,
A) national income must decrease.
B) real GDP must decrease.
C) the price level must decrease.
D) nominal GDP must decrease.
C
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The excludability versus nonexcludability issue is
A. relevant to the issue of market failure. B. not relevant to the issue of market failure. C. relevant to the free-rider problem. D. a and c E. b and c
According to the above table, if real Gross Domestic Product (GDP) is $25,000, planned saving equals
A) $2,000. B) $3,000. C) $4,000. D) $5,000.
Which of the following statements is TRUE about the price that a monopolist charges?
A. The difference between the price charged by a monopolist and a perfect competitor is due to differences in costs. B. Too much of the good is being produced in a competitive market and not enough is being produced in a monopoly. Due to the way that prices are set. C. The price is the same as the price that would be charged if there was perfect competition. D. The value that society places on the last unit produced in a monopoly is greater than its cost.
Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4. Answer the following question on the basis of this information. Refer to the information. All else being equal, if the price of
each input increased from $4 to $6, productivity would: A. fall from 2 to 3. B. fall from .50 to .33. C. rise from 1 to 2. D. remain unchanged.