With cost-push inflation in the short run, there will be a(n) ________.
A. leftward shift in the aggregate demand curve
B. decrease real GDP
C. decrease in unemployment
D. increase in real GDP
Answer: B
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Since the 1930s the United States has experienced continuous deflation
Indicate whether the statement is true or false
Markets provide
A) information. B) prices. C) incentives. D) all of these choices.
Which of the following is an example of a backward linkage?
a. A car industry creates a need for car dealerships. b. A compact disc industry creates a need for CD players. c. The development of a shoe industry creates a demand for a leather industry. d. An increase in the population increases the demand for food. e. New educational facilities improve the literacy rate of the population.
Demand for a good is inelastic if:
A. the quantity effect outweighs the price effect of a price increase. B. the absolute value of price elasticity is greater than 1. C. total revenue decreases when price decreases. D. None of these is true.