Assume the inflation rate falls from 4 percent to 2 percent. This means that
A) the price level has fallen.
B) the price level is increasing more slowly.
C) the economy is experiencing deflation.
D) real GDP is decreasing.
B
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Intertemporal decisions are
a. decisions in one period of time. b. decisions over time. c. decisions made without thinking about time. d. decisions involving infinity.
Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to remain the same and monetary base to rise. b. Demand for real goods and services to rise and M2 money supply to fall. c. Demand for real goods and services to remain the same and M2 money multiplier to remain the same. d. Demand for real goods and services to rise and monetary base to remain the same.
If Josh's income increases, then
A. His entire budget constraint will shift away from the origin. B. His indifference curves will shift away from the origin. C. One end of his budget constraint will move away from the origin. D. His entire budget constraint will shift toward the origin.
The monopolistically competitive seller maximizes profit by producing at the point where:
A. total revenue is at a maximum. B. average costs are at a minimum. C. marginal revenue equals marginal cost. D. price equals marginal revenue.