A simultaneous increase in inflation and decrease in economic growth in a country can be associated with:
a. a decrease in aggregate demand with no change in aggregate supply.
b. an increase in aggregate demand and aggregate supply.
c. an increase in aggregate supply with no change in aggregate demand.
d. a decrease in aggregate supply and aggregate demand.
e. a decrease in aggregate supply with no change in aggregate demand.
e
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If every country uses tariffs, everyone is likely to lose
a. True b. False Indicate whether the statement is true or false
The balance of payments constraint refers to the limits on:
A. exchange rate policy imposed by flexible exchange rates. B. currency convertibility observed in most developing countries. C. domestic macroeconomic policy, arising from a shortage of international reserves. D. macroeconomic policy resulting from IMF conditionality.
To find the percentage change in price,
A. The change in quantity is divided by the average quantity. B. The change in quantity is divided by the change in price. C. The percentage change in quantity demanded is divided by the percentage change in price. D. The change in price is divided by the average price.
A situation in which one firm's actions with respect to price, quality, advertising and related changes may be strategically countered by the reactions of one or more other firms in the industry is known as
A. economies of scale. B. barriers to entry. C. the concentration ratio. D. strategic dependence.