Inflation
A) is a continuing decline in the general level of prices of goods and services.
B) implies that the number of people unemployed has risen.
C) reduces the purchasing power of the dollar.
D) is an increase in the price of a single good or service.
C) reduces the purchasing power of the dollar.
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Brett buys a new cell phone for $100. He receives consumer surplus of $80 from the purchase. How much does Brett value his cell phone?
A) $180 B) $100 C) $80 D) $20
The primary tool used to change the US money supply and interest rates is open market operations
a. true b. false
If actual investment exceeds desired investment, then
A. A recession can develop. B. Leakages are greater than injections. C. Leakages are equal to injections. D. An inflationary spiral can develop.
The supply of product X is perfectly inelastic if the price of X rises by:
A. 5 percent and quantity supplied rises by 7 percent. B. 8 percent and quantity supplied rises by 8 percent. C. 10 percent and quantity supplied stays the same. D. 7 percent and quantity supplied rises by 5 percent.