Hurricane Katrina caused the price of oil to increase. This is an example of
A. inflation.
B. deflation.
C. the operations of supply and demand.
D. a sustained inflation.
Answer: C
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Refer to the scenario above. What is the expected value of the game?
A) $20 B) $50 C) $100 D) $300
Government policies that help increase the skills of the workforce or that subsidize employment more directly would
a. decrease employment and increase output b. increase employment and decrease output c. increase employment and increase output d. increase unemployment and decrease output e. increase unemployment and increase output
The economy was initially in equilibrium at point 3 and interest rates increased by 4 percentage points because of government deficit financing. The public spending, however, improves business confidence and activity that exactly offsets the potential crowding-out effect. This situation would result in a new equilibrium at point:
Refer to the above graph.
A. 2
B. 3
C. 4
D. 5
The value by which the nominal GDP of an economy exceeds its real GDP in percentage terms is equal to the: a. rate of inflation in the economy. b. rate of deflation in the economy. c. GDP deflator of the economy
d. GDP inflator of the economy.