The situation when the price of most goods and services are falling over time is called:
A. inflation.
B. deflation.
C. a boom.
D. disinflation.
Answer: B
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In which of the following situations might you expect expansionary monetary policy to reduce the unemployment rate?
A) if changes in monetary policy are unanticipated B) if expectations are rational C) if actual inflation is lower than expected D) if actual inflation is higher than expected
The law of increasing opportunity cost results in a constant slope of the production possibilities curve.
a. true b. false
The most a monopolist can sell at any given price is:
A. constrained by the availability of inputs. B. less than if it were a perfectly competitive market. C. the amount demanders are willing to buy at that price. D. the amount he alone can supply the market with.
From an economic standpoint, _______________ includes all natural resources used in the production process.
a. labor b. supply c. capital d. land