By definition, the purchasing power of money always drops when
A. there is a presidential election year.
B. inflation occurs.
C. the economy is experiencing full employment.
D. deflation occurs.
Answer: B
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Refer to Figure 7-1. The efficient equilibrium price is
A) $30. B) $25. C) $20. D) <$20.
There is a tendency for inflation rates to fall in countries that use inflation targeting
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true?
a. When a change in income causes consumption to change, the consumption-income line shifts; however, when anything besides income changes, we move along the line. b. When a change in income causes consumption to change, we move along the consumption-income line; however, when anything besides income changes, the line shifts. c. When income or anything else affecting consumption changes, we move along the consumption-income line. d. When income or anything else affecting consumption changes, the consumption-income line shifts. e. There is no way to determine, without more information, whether a change in income or anything else will shift the consumption line or cause movement along the consumption-income line.
The optimal level of employment for a monopsonist is set at the point where the
A. marginal factor cost equal to the MRPL. B. supply of labor equals the marginal factor cost. C. wage rate equals the VMPL. D. wage rate equals the marginal factor cost.