Suppose the price level is 110.00 at the end of 2020, 121.00 at the end of 2021, and 128.26 at the end of 2022 . Can we accurately describe the period 2021-2022 as a period of disinflation?
Yes. The rate of inflation for 2021 was 10 percent and the rate of inflation for 2022 was 6 percent. The reduction in the inflation rate over the period allows us to characterize the period as one of disinflation.
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In a competitive price-taker market, the actions of any single buyer or seller will
a. have a negligible impact on the market price. b. have little effect on overall production but will ultimately change final product price. c. cause a noticeable change in overall production and a change in final product price. d. adversely affect the profitability of more than one firm in the market.
Free trade causes job losses in industries in which a country does not have a comparative advantage, but it also causes job gains in industries in which the country has a comparative advantage
a. True b. False Indicate whether the statement is true or false
When a competitive firm produces output up to the point at which the price is equal to marginal cost, it also hires labor up to the point at which the wage is equal to the
a. marginal cost of labor. b. marginal profit of labor. c. marginal product of labor. d. value of the marginal product of labor.
In the ISLM framework, an expansionary fiscal policy causes aggregate output to ________ and the interest rate to ________, everything else held constant
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase