Suppose the price level is 115.00 at the end of 2020, 112.02 at the end of 2021, and 109.08 at the end of 2022 . Can we accurately describe the period 2021-2022 as a period of disinflation?
No. Since the price level is falling over the period, it is accurate to characterize the period as one of deflation, rather than disinflation.
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Consumer’s surplus
A. is the gap between total willingness to pay and the total market value of a good. B. guarantees that the market value of a good in money is equal to the total economic value of the good. C. is always negative because of diminishing marginal utility. D. is the total area under a consumer’s demand curve.
If price were $6, there would be a (shortage or surplus) _____ of _____.
Suppose that one firm produces a product that results in negative external costs to society. This information suggests that
A. at the market price, quantity demanded is less than quantity supplied. B. the equilibrium market price of the product includes the external costs borne by society. C. resources are under-allocated to the firm. D. resources are over-allocated to the firm.
The multiplier for government spending is the same as the
A) multiplier for autonomous consumption. B) marginal propensity to save. C) marginal propensity to import. D) tax multiplier.