Inflation that occurs when total spending is greater than the economy's ability to produce output at the existing price level is:
a. Unanticipated inflation
b. Cost-push inflation
c. Anticipated inflation
d. Demand-pull inflation
d. Demand-pull inflation
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A market structure in which only one seller sells a product for which there are no close substitutes is called a
a. cartel b. oligopoly c. monopoly d. trust
The law of supply states that:
A. there is a negative relationship between the price of a good and the quantity of it purchased by suppliers. B. there is a positive relationship between the price of a good and the quantity that buyers choose to purchase. C. there is a positive relationship between the price of a good and the quantity of it offered for sale by suppliers. D. at a lower price, a greater quantity will be supplied.
A profit-maximizing firm should spend an additional dollar on advertising so long as this expenditure results in more than one dollar of:
a. additional sales. b. reduced costs. c. increased profits. d. demand.
The legislation which outlawed stock-purchase mergers that would substantially reduce competition was the:
A. Sherman Act. B. Clayton Act. C. Robinson-Patman Act. D. Celler-Kefauver Act.