demand pull inflation starts as the
What will be an ideal response?
AD curve shifts rightward
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The marginal propensity to consume:
A. is the amount by which consumption increases when after-tax income increases by $1. B. is closely linked to the multiplier effect of government spending. C. is a value between 0 and 1. D. All of these are true.
A labor market differs from a product market because
a. in a labor market, firms are suppliers and households are demanders b. the usual laws of economics do not apply to labor markets c. supply and demand are only relevant for labor markets d. supply and demand are only relevant for product markets e. in a labor market, firms are demanders and households are suppliers
The text refers to OPEC as a classic example of a cartel. OPEC is a group of countries that collude to control prices and output in the _______ industry(ies)
a. agriculture b. engineering and computer c. airline d. oil e. machinery
Suppose you inherit an orange orchard and it generates an annual return of $16,000 . You want to sell it. The interest rate is 8 percent. If the government imposed an interest rate ceiling at 10 percent, the ceiling would cause the price of your orchard to
a. go down b. go up c. stay the same d. be irrelevant because you would be unable to sell the orchard at any price when the price ceiling is higher than the interest rate e. not enough information given