A pure price change occurs
A. when technology and quality improve an item.
B. when inflation alone increases the price of an item.
C. with unanticipated inflation.
D. when inflation exceeds expected inflation rates.
Answer: B
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Upstream and downstream refer to the degree of horizontal integration
Indicate whether the statement is true or false
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and real GDP in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and real GDP falls. b. The quantity of real loanable funds per time period falls, and real GDP rises. c. The quantity of real loanable funds per time period rises, and real GDP remains the same. d. The quantity of real loanable funds per time period and real GDP remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
William Julius Wilson believes that the rise of black urban poverty was caused by each of the following except
A. the rise of welfare dependency. B. racism. C. the decline of smokestack industries. D. the exodus from the ghettos of the black middle and working classes.
Which of the following combinations of changes in government spending and taxes in necessarily expansionary?
A) Increase/Increase B) Increase/Decrease C) Decrease/No change D) Decrease/Increase E) Decrease/Decrease