The U.S. economy has had persistent inflation in recent decades. A possible explanation for the inflation is that
A. there have been decreases in aggregate demand while aggregate supply has remained unchanged.
B. there have been increases in the growth rate while aggregate demand has remained unchanged.
C. there have been decreases in the growth rate while aggregate demand has remained unchanged.
D. growth in aggregate demand has been greater than growth in aggregate supply.
Answer: D
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We may not be able to predict the outcome of a two-player game when
a. each player follows a strategy that negates the strategy of the other player b. price exceeds marginal cost c. neither player has a subsistence strategy d. neither player has a dominant strategy e. at least one player has a bilateral strategy
Other things the same, if the money supply rises by 2% and people were expecting it to rise by 5%, then some firms have
a. higher than desired prices, which increases their sales. b. higher than desired prices, which depresses their sales. c. lower than desired prices, which increases their sales. d. lower than desired prices, which depresses their sales.
"Walmart is a low wage firm and this indicates that it exploits its workers" which of the following should cause one to question the validity of this statement?
What will be an ideal response?
Suppose ten companies begin introducing new genetically engineered apples. Each has their own distinctive taste and brand name. This market would be described by
A. monopoly. B. oligopoly. C. perfect competition. D. monopolistic competition.