In China, suppose that the price level was 100 in 2014, 110 in 2015, and 120 in 2016. Over these three years
A) the inflation rate accelerated.
B) inflation did not occur.
C) prices were stable.
D) the inflation rate was positive.
D
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What is productivity?
What will be an ideal response?
Under fixed exchange rates, which one of the following statements is the MOST accurate?
A) Devaluation causes a rise in output. B) Devaluation causes a decrease in output. C) Devaluation has no effect on output. D) Devaluation causes a rise in output and a decrease in official reserves. E) Devaluation causes a decrease in output and in official reserves.
A firm that acquires a substitute product can try to reduce inter-product cannibalization by
a. Doing nothing b. Repositioning its product or the substitute so that they do not directly compete with each other c. Pricing each product at the same level d. Lowering the prices on both the products
One benefit of automatic stabilizers is that they
a. decrease consumption during a recession below what it would otherwise be b. make GDP more volatile c. cause the cyclical deficit to fall during a recession d. increase consumption during a recession above what it would otherwise be e. increase consumption during an expansion above what it would otherwise be