If the CPI decreases from one year to the next, then the inflation rate is
A) negative. B) 0. C) below 100. D) above 100. E) positive.
A
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An efficiency wage is ________ and results in ________
A) equal to the equilibrium wage; full employment B) above the equilibrium wage; a surplus of labor C) below the equilibrium wage; a shortage of labor D) above or below the equilibrium wage; a surplus or shortage of labor
If current output is less than the profit-maximizing output, which must be true?
A) Total revenue is less than total cost. B) Average revenue is less than average cost. C) Average revenue is greater than average cost. D) Marginal revenue is less than marginal cost. E) Marginal revenue is greater than marginal cost.
When the inflation rate rises, the purchasing power of nominal income:
a. remains unchanged. b. decreases. c. increases. d. changes by the inflation rate minus one.
Many economists from both the Keynesian and neoclassical schools have found that the policies implemented to stabilize the economy and financial markets during the Great Recession:
a. were totally ineffective b. made the Great Recession worse. c. were effective, although to varying degrees. d. were totally effective.