Suppose the respective prices of yogurt, candy bars, and popcorn in Year 1 are $1, $2, and $3 . In Year 2, the unit prices of each are $2, $3, and $4 respectively. Which of the following statements is true of the price level between Year 1 and Year 2?
a. It decreased by 20 percent
b. It increased by 33 percent.
c. It increased from $6 to $9.
d. It decreased at a rate between 20 percent and 50 percent.
e. It increased at a rate between 33 percent and 100 percent.
e
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Demand-pull inflation is illustrated in the short run aggregate supply-aggregate demand model as a shift of the aggregate ________.
A. demand to the left B. demand to the right C. supply to the left D. supply to the right
Scarcity is a concept that implies that choices must be made
a. True b. False Indicate whether the statement is true or false
Keynes’ law states that:
a. demand creates its own supply. b. when there is supply there will be demand. c. you can only supply what is demanded. d. people create both supply and demand.
If the government attempts to control pollution with a command-and-control policy:
A. the government will command each firm to produce no more than a certain level of pollution. B. the government will control the firm's entire production process. C. the government will force the firm to use particular pollution-control technologies. D. All of these