When the overall level of prices in the economy is increasing, economists say that the economy is experiencing
a. economic growth.
b. stagflation.
c. inflation.
d. deflation.
c
You might also like to view...
According to the principle of rational choice, a consumer should spend money on those goods which provide the most marginal utility per dollar.
Answer the following statement true (T) or false (F)
In theory, when a local government receives a grant to finance a certain type of expenditure, it should spend more if the grant _____
a. is a matching grant rather than a categorical grant b. is a categorical grant rather than a matching grant c. is a general grant rather than a matching grant d. is a categorical grant rather than a matching grant
Economic choice and competitive behavior are the result of
What will be an ideal response?
Using fiscal and monetary policies to deal with a demand shock ______.
a. will prevent the occurrence of a supply shock b. will create a negative supply shock c. is more effective than using them to deal with a supply shock d. is less effective than using them to deal with a supply shock