In which of the following sets of circumstances can we confidently expect inflation?
A. Aggregate supply decreases and aggregate demand increases.
B. Aggregate supply increases and aggregate demand decreases.
C. Aggregate supply and aggregate demand both increase.
D. Aggregate supply and aggregate demand both decrease.
Answer: A
You might also like to view...
Assume that markets clear. If in the labor market there is
a. an excess supply of labor, wages will rise b. an excess demand for labor, wages will fall c. an excess demand for labor, wages will rise d. an excess supply of labor, wages stay constant e. a decline in labor demand, wages will rise
The reason that opportunity costs arise is that
A. people have unlimited wants. B. there are no alternative decisions that could be made. C. an economy relies on money to facilitate exchange of goods and services. D. resources are scarce.
Many economists believe a comprehensive income tax
A. would balance efficiency and equity well. B. would be less efficient than excise taxes. C. would be more efficient than a lump sum head tax. D. would be less equitable than a lump sum head tax.
Answer the following statement(s) true (T) or false (F)
1. Economists have shown that economic growth results in political freedom. 2. On average, societies where saving some of one’s income is favored over spending it grow at a slower rate than other societies. 3. Investments by foreigners tend to reduce a country’s growth over the long run. 4. While some economists believe that improvements in infrastructure can increase productivity, other economists believe that increased productivity leads to better infrastructure. 5. A government can improve productivity by investing in research and development.