What are the primary effects of cost-push inflation?
A. It raises real output, and redistributes an increased level of real income
B. It reduces real output and redistributes a decreased level of real income
C. It raises real output, but redistributes a decreased level of real income
D. It reduces real output, but redistributes an increased level of real income
B. It reduces real output and redistributes a decreased level of real income
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Oligopoly is a market structure in which
A) many firms each produce a slightly differentiated product. B) one firm produces a unique product. C) a small number of firms compete. D) many firms produce an identical product. E) the number of firms is so small that they do not compete with each other.
The exchange rate can be influenced by a nation's central bank
Indicate whether the statement is true or false
Refer to Figure 14.1. Other things equal, an increase in government spending on infrastructure projects is best represented as a movement from
A) point X to point Y. B) point Z to point X. C) point Z to point Y. D) point Y to point X.
In the long run the corporate profits tax may lead to
A. higher prices for the products of corporations as well as higher prices for the products of partnerships and proprietorships. B. higher prices for the products of corporations and lower prices for the products of partnerships and proprietorships. C. lower prices for the products of corporations and higher prices for the products of partnerships and proprietorships. D. lower prices for the products of corporations as well as lower prices for the products of partnerships and proprietorships.