If the price of computers falls during a period when the average price level remains constant, which of the following has occurred?
A. Inflation
B. A change in relative prices
C. Deflation
D. A recession
B. A change in relative prices
You might also like to view...
In which of the following ways can national savings be calculated?
A) By deducting net exports and government expenditure from total output B) By deducting consumption and investment from total output. C) By deducting consumption and government expenditure from total output D) By deducting investment and government expenditure from total output
Firms face trade-offs in production, including decisions related to:
A) which products to produce. B) how much of a particular product to produce. C) the best way to produce a given amount of output. D) all of the above
A demand curve shows how quantity demanded changes as the price changes. It implies that
a. only a change in price can shift a demand curve b. everything else that affects demand is assumed to be constant c. quantity demanded is unrelated to price d. economists are concerned only with money e. it is impossible to show how anything but price affects demand
Based on this graph for the welfare effects of a subsidy, when does the deadweight loss start?
a. when the demand rises above the quantity at E1
b. when the supply rises above the quantity at E1
c. when the supply rises above the quantity at E2
d. when the demand drops below the quantity at E2