Cost-push inflation can start with
A) a decrease in government expenditure.
B) an increase in oil prices.
C) a decrease in investment.
D) a decrease in the quantity of money.
E) an increase in government expenditure.
B
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Deposits are examples of a bank's
A) liabilities. B) assets. C) net worth. D) balance sheet.
Property rights
A) only need to be found in wealthy segments of the population. B) need to be universal. C) do not promote incentives. D) do not promote efficiency
If, at the full employment level of income, the amount that businesses plan to invest is greater than the amount that consumers plan to save, then
a. there will be an inflationary gap. b. there will be a deflationary gap. c. total demand will fall short of potential GDP. d. the economy will suffer from increasing unemployment.
Figure 8.8 shows demand, marginal revenue, and costs of a duopolist. Suppose that the two duopolists have the same costs. If the two firms form a cartel and charge the profit-maximizing monopoly price, compared to perfect competition, the market price will be ________ and the total output level will be ________.
A. higher; greater B. higher; smaller C. lower; greater D. lower; smaller