The purchasing power of money decreases as the price level increases.
Answer the following statement true (T) or false (F)
True
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When negative spending shocks occur, transfer payments automatically fall
a. True b. False
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Recall the Application about the opportunity cost of an entrepreneur to answer the following question(s).According to this Application, which of the following is currently a popular way to earn an income?
A. renting out your home through Airbnb B. selling your kidneys C. driving your car through Uber D. cleaning other people's homes
The law of demand implies that the demand curve
A. shifts to the left when the price of a good decreases. B. shifts to the right when the price of a good increases. C. has a negative slope. D. has a positive slope.