A situation in which output decreases while prices increase is often referred to as:
A. inflation.
B. negative economic growth.
C. a recession.
D. stagflation.
Answer: D
You might also like to view...
Luigi is willing to lend Klaus $5,000 for one year at a nominal rate of interest of 7%. Both Luigi and Klaus expect the rate of inflation to be 2% in the next year. What is the real return that Klaus is offering to Luigi?
A. 9% B. 5% C. 7% D. 2%
The burden of a tax falls entirely on buyers if ________
A) the price elasticity of demand is zero (perfectly inelastic) B) the price elasticity of demand is greater than 1 C) the income elasticity of demand is high D) the price elasticity of supply is unitary elastic
The process by which new ideas spread from the original company to other businesses in the economy is called
A. innovative revolution. B. patent dispersion. C. technological diffusion. D. Moore's process.
Which of the following will not happen as a consequence of a monopolistically competitive firm suffering economic losses in the short run?
A) The firm's demand curve will shift to the right if it stays in business in the long run. B) The firm will exit the industry if it continues to suffer economic losses. C) The firm will break even if its stays in business in the long run. D) In the long run, the firm will be able to charge a price that is greater than its average total cost.