Deflation
a. reflects falling price levels
b. was prevalent during the oil shocks of the 1970s
c. under the current trends will cause consumers' purchasing power to shrink
d. has been persistent in the U.S. economy since the Great Depression
e. is the same as stagflation
A
You might also like to view...
The short-run Phillips curve shifted during the 1970s primarily because of
A) the two large oil price shocks. B) the changing demographics of the population. C) tight monetary policy. D) easy fiscal policy.
At his current level of output, a monopolist has a MR of $10, a MC of $6, and an economic profit of zero. If the market demand curve is downward sloping and his marginal cost curve is upward sloping, the monopolist: a. is producing at the profit-maximizing level of output
b. could increase profit by increasing output. c. could increase profit by increasing his price. d. should exit the market if significant fixed costs have been incurred.
Suppose there is diminishing, but not negative, marginal utility and no inflation. If the price of labor goes up, a worker will supply more labor. (Hint: The worker measures his marginal costs in terms of hours worked.)
Answer the following statement true (T) or false (F)
Internal shocks to an economy with a fixed exchange rate will
A. have no impact on the domestic economy but will lead to external imbalances. B. have the same types of impacts as monetary and fiscal policy changes. C. have no impact on the country's internal balance but will change the country's balance of payments. D. have no impact on both the country's internal balance and the country's balance of payments.