The reason why inflation reduces the value of the multiplier is that part of the change in demand is
A. absorbed by price changes.
B. saved rather than spent.
C. matched by changes in supply.
D. matched by changes in income.
Answer: A
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An industry is deemed concentrated when ________
A) each firm in that industry has a small market share B) all the firms in that industry charge a price lower than the average cost of production C) most of the firms in that industry earn zero economic profits in the long run D) a few firms account for a large fraction of total sales in that industry
Looking at the components of the income approach we see that
A) compensation of employees is the largest category. B) consumption is the largest category. C) profits are the largest category. D) rental income is the largest category.
Explain what the Five Forces Model is useful for and identify each of them
What will be an ideal response?
Voting power in the IMF is determined by a country's
A) political power. B) quota. C) size. D) All of the above.