If consumers tend to buy higher quantities of goods and services for which prices rose in the past year compared to the quantities of goods and services for which prices fell, we would say the economy has likely experienced
A. reflation
B. stagflation
C. deflation
D. inflation
Answer: D. inflation
You might also like to view...
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
While some countries might be better off (in terms of social surplus) from the imposition of a tariff, the world overall is always worse off (in terms of social surplus) when import tariffs are imposed.
Answer the following statement true (T) or false (F)
Explain the difference between a change in demand and a change in quantity demanded
What will be an ideal response?
An exchange rate depreciation acts to reduce inflation
a. True b. False Indicate whether the statement is true or false