Inflation is
A. A decrease in the price of all goods and services.
B. Included in the calculation of real GDP.
C. The increase in the market value of a product that takes place at each stage of the production process.
D. An increase in the average level of prices of goods and services.
Answer: D
You might also like to view...
Refer to Figure 13-2. Ceteris paribus, an increase in the capital stock would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
The seller of an option has the ________ to buy or sell the underlying asset while the purchaser of an option has the ________ to buy or sell the asset
A) obligation; right B) right; obligation C) obligation; obligation D) right; right
Declines in business inventories enter national income accounts: a. negatively in the consumption category. b. negatively in the investment category. c. negatively in the net export category
d. positively in the profits category.
The concept of present value helps explain why
a. investment decreases when the interest rate increases, and it also helps explain why the quantity of loanable funds demanded decreases when the interest rate increases. b. investment decreases when the interest rate increases, but it is of no help in explaining why the quantity of loanable funds demanded decreases when the interest rate increases. c. the quantity of loanable funds demanded decreases when the interest rate increases, but it is of no help in explaining why investment decreases when the interest rate increases. d. None of the above are correct; the concept of present value is of no help in explaining why either investment or the quantity of loanable funds demanded decreases when the interest rate increases.