A situation in which output decreases while prices increase is often referred to as:
A. inflation.
B. negative economic growth.
C. a recession.
D. stagflation.
Answer: D
You might also like to view...
Explain what the fallacy of composition is and give an example
What will be an ideal response?
With free entry
A) economic profits are possible over the long run. B) economic profits are possible but only over limited amounts of time. C) economic profits are not possible. D) the cost of capital will not be covered.
If the level of unemployment is above the natural rate of unemployment, it would be expected that:
a. the short-run Phillips curve will shift leftward, as inflationary expectations adjust. b. the inflation rate will increase c. the short-run Phillips curve will shift rightward, as inflationary expectations adjust. d. both b. and c.
American consumers decide to boycott grapes in support of the farm workers' union. Everything else being equal, the
a. price of grapes will rise. b. supply of grapes will fall. c. quantity supplied of grapes will fall. d. demand curve for grapes will shift to the right.