An increase in the price level means that
A. the value of the dollar has increased.
B. monetary policy has been contractionary.
C. long-run aggregate supply has increased.
D. the purchasing power of money has fallen.
Answer: D
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Which of the following statements is TRUE about the market and individual firm's supply curve for labor?
A) The market supply curve is perfectly elastic and the individual firm's supply curve is perfectly inelastic. B) The market supply curve is perfectly inelastic and the individual firm's supply curve is perfectly elastic. C) The market supply curve is more elastic than the firm's supply curve. D) The market supply curve is more inelastic than the firm's supply curve.
Selling at unreasonably low prices in order to destroy competing firms is known as
a. administered pricing. b. price discrimination. c. collusive practices. d. predatory pricing.
If the population of a country is 1,000,000 people, its labor force consists of 600,000, and 60,000 people are unemployed, the unemployment rate is:
A. 6.0 percent. B. 6.6 percent. C. 10.0 percent. D. 60.0 percent.
In his book, An Inquiry into the Nature and Causes of the Wealth of Nations, economist Adam Smith argued that individuals
A) always tend to act in an altruistic manner. B) always consider the impact of their actions on the welfare of others. C) are motivated by self-interest. D) are never concerned with economic issues.