The years 2002 through 2007 can be described as a period of
A. falling output accompanied by increasing inflation.
B. falling output accompanied by decreasing inflation.
C. rising output accompanied by increasing inflation.
D. rising output accompanied by decreasing inflation.
Answer: C
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An industry has only four firms, who have market shares of 45 percent, 25 percent, 20 percent, and 10 percent. What is the Herfindahl-Hirschman Index?
What will be an ideal response?
According to the text, which of the following factors may make the theory of purchasing power parity unrealistic?
A) Purchasing power parity works only with traded goods. B) Trading countries may stop exchanging goods once prices between them equalize. C) Shipping, insurance, and transaction costs may reduce the implication of purchasing power parity. D) Prices may not equalize if goods arbitrage is reduced by trade barriers. E) The effects of purchasing power parity may not show up until many years have passed.
Holding other things constant, increases in the price level in the US will
a. Cause the dollar to gain value b. Cause the dollar to lose value c. Does not affect the dollar value d. None of the above
The downward sloping aggregate demand curve can be explained in part through the:
A. positive relationship between the price level and net exports. B. positive relationship between the price level and consumption. C. negative relationship between the price level and investment spending. D. All of these are true.