An increase in aggregate demand, say, from an increase in our exports to Canada, results in
a. deflation
b. demand-pull inflation
c. stagflation
d. cost-push inflation
e. a recession
B
You might also like to view...
Which of the following events would cause the price of oranges to fall?
a. There is a shortage of oranges. b. The FDA announces that bananas cause strokes, and oranges and bananas are substitutes. c. The price of land throughout Florida decreases, and Florida produces a significant proportion of the nation's oranges. d. All of the above are correct.
When some resources used in production are only available in limited quantities, it is likely that the long-run supply curve in a competitive market is
a. downward sloping. b. upward sloping. c. horizontal. d. vertical.
If a firm in a monopolistically competitive market has a demand curve shifting to the right, it could be that:
A. the selling price is less than the average total cost of the firm. B. firms are leaving the market. C. negative economic profits are being earned. D. All of these statements are true.
Carefully explain why tariffs create deadweight losses
What will be an ideal response?