A sustained fall in the aggregate price level is called:
A. economic decline.
B. deflation.
C. economic growth.
D. inflation.
Answer: B
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
A monopsonistic employer will pay a wage rate
A) less than the labor's MRP. B) greater than the labor's MRP. C) equal to the labor's MRP. D) equal to MFC.
In the DuPont cellophane case, rivals accused DuPont of monopolizing cellophane. DuPont claimed that the relevant market was flexible wrapping material, such as wax paper and aluminum foil, rather than just cellophane. DuPont won the case. What type of evidence constituted DuPont's defense?
Issues of growth are generally considered in:
A. the long-run framework. B. the short-run framework. C. both the short-run and the long-run frameworks. D. neither the short-run nor the long-run frameworks.