Ongoing inflation has its own momentum because
a. prices rise whenever firms see other prices rising
b. the public learns to expect inflation and adjusts its decisions in response
c. public officials are unwilling to stop prosperity
d. more and more people now have jobs
e. we are always playing catch up, trying to get what we lost when others raise prices
B
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The following table contains the actual prices charged by four Web sites for a 3D Collector's Edition Blu-ray disc of the movie Marvel's Avengers: Age of Ultron in November 2015
Amazon $24.99 Walmart 25.48 Best Buy 29.99 Disney Store 29.99 Explain whether the information in this table contradicts the law of one price.
Children who play in playgrounds with rubber surfaces instead of gravel surfaces tend to
a. Play safer b. Play rougher c. Not change their play patterns d. Not like playing in the playground
When a transfer price increases
a. the profits of the division producing the intermediate product will rise b. the profits of the division producing the intermediate product will fall c. the costs of the division producing the intermediate product will rise d. the costs of the division producing the intermediate product will fall
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.