According to New Keynesians, an increase in which of the following will tend to cause the inflation rate to increase?
A. anticipated future inflation
B. an unexpected increase in aggregate demand
C. firms' average inflation adjusted per-unit costs of production
D. all of these
Answer: D
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Which of the following is false?
a. Products with close substitutes have elastic demand b. Demand for individual brand is less elastic than industry aggregate demand c. Products with many complements have less elastic demand d. In the long run, demand curves become more elastic
Price discrimination
a. is illegal in the United States and Europe. b. can occur in both perfectly competitive and monopoly markets. c. is illogical because it does not maximize profits. d. can maximize profits if the seller can prevent the resale of goods between customers.
The key measure used to track economic growth is
What will be an ideal response?
Recall the Application about craft beer and the increase in the price of hops to answer the following question(s).Recall the Application. Because hops are inputs in the production of beer, an increase in the production of beer resulted in:
A. an increase in the demand for hops. B. a decrease in the demand for hops. C. an increase in the quantity demanded for hops. D. a decrease in the quantity demanded for hops.