Which of the following is most likely to lead to demand-side inflation?
A. An increase in government spending
B. A decrease in taxes
C. An increase in the money supply
D. All of these responses are correct.
Answer: D
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During a business cycle recession, it is very likely that real GDP will
A) be greater than potential GDP. B) be less than potential GDP. C) equal nominal GDP and equal potential GDP. D) exceed nominal GDP. E) equal nominal GDP but not equal potential GDP.
A recent article suggests that the introduction of the new iPhone 6 increased the demand for iPhone protective cases. The article suggests that these two goods are
A) substitutes and their indifference curves are close to being straight lines. B) complements and their indifference curves are close to being straight lines. C) substitutes and their indifference curves are close to being L shaped. D) complements and their indifference curves are close to being L shaped.
A change in input prices will change the location of the budget line
a. True b. False Indicate whether the statement is true or false
An example of "cream skimming" is when:
a. a firm charges the same price to all consumers, even though costs for some are higher b. a firm offers a reduced price to the best-paying customers of their competitors c. a firm offers a reduction in price on a package sale of two items d. none of these