Which of the following statements is true?
What will be an ideal response?
Deflation is a decrease in overall prices, disinflation is a decrease in the rate of inflation.
Correct
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In the long run, a firm in a perfectly competitive industry will supply output only if its total revenue covers its
A) implicit costs. B) fixed costs. C) explicit costs plus its implicit costs. D) explicit costs.
In 1940, military spending amounted to roughly _____ of GDP; by 1943, it had risen to roughly ________ of GDP
a. 20 percent; 30 percent b. 2 percent; 40 percent c. 15 percent; 20 percent d. 1 percent; 25 percent
The price of services at Urban General falls by 10 percent
a. Quantity demanded at Urban General increases by 15.0 percent. b. Quantity demanded at Urban General increases by 1.5 percent. c. Quantity demanded at St.Elsewhere rises by 3.5 percent. d. Quantity demanded at St.Elsewhere falls by 5.0 percent. e. Quantity demanded at Urban General rises by 5.0 percent.
Economic theory is necessary and extremely important because of its relationship to economic policy.
Answer the following statement true (T) or false (F)