Which of the following is correct?
a. A period of hyperinflation is a period of extraordinarily low inflation.
b. A period of deflation is any period during which the inflation rate is decreasing.
c. In the 1970s, U.S. inflation averaged about 7.8 percent per year
d. All of the above are correct.
c
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Use the following table showing the consumption schedule for an economy to answer the next question. All figures are in billions of dollars.RGDPConsumption$440$450490490540530590570640610Given a level of investment and government expenditures totaling $30 billion, zero net exports, and a lump-sum tax of $30 billion, a reduction of government expenditures of $20 billion at each level of real GDP will result in an equilibrium real GDP of
A. $490 billion. B. $590 billion. C. $640 billion. D. $540 billion.
What are the main characteristics that make it more likely for a cartel to enforce agreements among participating members?
What will be an ideal response?
For an inferior good, a rise in price causes
a. negative income and substitution effects b. positive income and substitution effects c. a negative income effect and a positive substitution effect d. a positive income effect and a negative substitution effect e. a positive income effect, but no substitution effect
Money market mutual funds are included in
a. M1 but not M2. b. M1 and M2. c. M2 but not M1. d. neither M1 nor M2.