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
Answer: D
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In the table above, country A is producing 4 units of X and 8 units of Y and country B is producing 4 units of X and 6 units of Y. The opportunity cost of producing more of
A) good X is the same for both countries. B) good Y is the same for both countries. C) good X is lower in country A. D) good Y is lower in country A.
The market demand curve for any good is:
a. independent of individuals' demand curves for the good. b. the vertical summation of individuals' demand curves. c. the horizontal summation of individuals' demand curves. d. derived from the firm's marginal cost of production.
Tim shifted to a new house closer to his office with his family after receiving a favorable salary review from his employer. Here, the new house can be considered as a normal good
Indicate whether the statement is true or false
Perfectly competitive firms are called price takers because they have ______ control over prices.
a. no b. some c. considerable d. complete