An increase in AD will trigger less inflation under which of the following conditions?
A. AD is relatively steep.
B. AD is relatively flat.
C. AS is relatively steep.
D. AS is relatively flat.
Answer: D
You might also like to view...
The political wisdom of choosing a tariff acceptable to the median U.S. voter is
A) a good example of the principle of the second best. B) a good example of the way in which actual tariff policies are determined. C) a good example of the principle of political negotiation. D) not evident in actual tariff determination. E) usually evident in actual tariff determination.
The value of total output must equal the value of total income in an economy for all of the following reasons except
A. For the circular nature of spending and income in the economy. B. Government expenditures must equal government revenues. C. One person's expenditures on goods and services is another person's income. D. Income earned is spent on goods and services, which creates additional production.
The calculation of GDP excludes the value of
A) government expenditure on office supplies. B) households' purchases of shampoo. C) businesses' purchase of new machine tools. D) a family member painting the family home. E) expenditure on durable goods.
A firm cannot control all of the factors that allow it to make economic profits. Which of the following is an example of an uncontrollable factor?
A) hiring competent managers B) input prices C) product differentiation D) producing at a lower average total cost than competing firms