Inflation refers to the situation when
A. the rate at which prices are rising is rising.
B. all prices rise by the same rate.
C. the average of all prices is increasing.
D. the prices of necessities increase.
Answer: C
You might also like to view...
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
An example of automatic fiscal policy is
A) an interest rate cut, initiated by an act of Congress. B) an increase in the quantity of money. C) a tax cut, initiated by an act of Congress. D) a decrease in tax revenues, triggered by the state of the economy. E) any change in the interest rate, regardless of its cause.
Some policy makers have suggested that mandatory health insurance coverage would:
A. help to reduce the cost of health care. B. overcome adverse selection in the market for health insurance. C. keep premiums lower than if healthy people could opt out. D. All of these statements are true.
Blu-ray players and Blu-ray discs are:
A. complementary goods. B. substitute goods. C. independent goods. D. inferior goods.