An increase in the price level caused by a rightward shift of the aggregate demand curve is called:
a. cost-push inflation.
b. supply shock inflation.
c. demand shock inflation.
d. demand-pull inflation.
d
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A retired athlete built a gym near his house that could be used for free by all the residents in the neighborhood. However, the overuse of the facilities soon led to irreparable damages. This is an example of the ________
A) tragedy of the commons B) pecuniary externality C) paradox of thrift D) prisoners' dilemma
The Phillips curve shows the relationship between
A. the rate of inflation and the rate of unemployment. B. the rate of growth of real GDP and the rate of unemployment. C. real prices and real GDP. D. the rate of inflation and the rate of growth of real GDP.
When the inflation rate falls, what happens, and why, to the MP, IS, and AD curves?
What will be an ideal response?
Total surplus or gains created from trade equal
a. Seller surplus b. Buyer surplus c. The summation of seller and buyer surplus d. Profits earned by a firm