Inflation is
What will be an ideal response?
a persistent increase in the general level of prices.
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The marginal propensity to consume (MPC) is the change in consumption divided by the change in income
a. True b. False Indicate whether the statement is true or false
In a traditional economy, innovation is encouraged
a. True b. False Indicate whether the statement is true or false
Suppose that the consumer price index of a country was 160 at year-end 2007 and 168 at the end of 2008 . What was the country's inflation rate during 2008?
a. 5 percent b. 8 percent c. 60 percent d. 68 percent
Use the following table for Country X to answer the next question. Column 1 of the table is the world price of a product. Column 2 is the quantity demanded domestically (Qdd), and Column 3 is the quantity supplied domestically (Qsd).PriceQddQsd$5.002004004.002503503.003003002.003502501.00400200If Country X opens itself up to international trade, at what world price will it begin exporting some units of the product? Assume the small-country model is applicable.
A. Any price above $1.00 B. Any price below $1.00 C. Any price above $3.00 D. Any price below $3.00