If an economy is growing, but experiences no inflation, this means
a. aggregate demand increased, but aggregate supply did not.
b. aggregate supply decreased, but aggregate demand did not.
c. aggregate demand and aggregate supply increased by the same amount.
d. aggregate demand and aggregate supply decreased by the same amount.
c
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The "lemons problem" exists because of
A) transactions costs. B) economies of scale. C) rational expectations. D) asymmetric information.
Using our model of consumer choice, is it possible for a consumer to buy less of a particular good when his income rises? Briefly explain
According to the circular flow, the dollar value of a nation's output is equal to
A. total income. B. wages. C. the sum of the values of all inputs. D. profits.
If quantity demanded is completely unresponsive to price changes, demand is
A. relatively elastic. B. relatively inelastic. C. perfectly elastic. D. perfectly inelastic.