Suppose that the inflation rate for a given year was 3%. In that year,
a. all prices rose by 3%
b. prices on average rose by 3%
c. the economy was in an expansion
d. the economy was in a recession
e. the inflation rate was rising
B
You might also like to view...
When will the substitution effect of a wage increase cause a fall in the amount of labor employed?
a. Always. b. When labor is not a regressive factor. c. When labor and capital are substitutes in production. d. When labor and capital are complements in production.
An intermediate good is a good that is
A) neither normal nor inferior. B) used as an input. C) a stand-in for all goods. D) is tangible good that includes substantial services.
The rational expectations hypothesis implies that discretionary macro-policy will:
a. be ineffective, even in the short run. b. be effective in the short run but ineffective in the long run. c. be effective both in the short run and long run. d. make it possible to trade-off a higher rate of inflation for a lower rate of unemployment.
In the case of a natural monopoly, two firms can produce at lower average cost than one firm can.
Answer the following statement true (T) or false (F)