A continuous decrease in the level of prices over time is called ________.
A) deflation
B) inflation
C) disinflation
D) deflection
E) depression
A) deflation
Explanation: A) By definition, deflation is a decrease in general level of prices over time.
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Which of the following statements about full employment is true?
A. Liberal economists insist that an unemployment rate of 4 percent constitutes full employment. B. Conservative economists feel that an unemployment rate of 6 percent is a realistic portrayal of full employment. C. Economists cannot agree on what constitutes full employment, thus 5% represents a reasonable compromise. D. All of these choices are true.
The model of perfect competition is most likely to apply to a market where
a. it is difficult for existing firms to exit the market b. there are a few buyers, and they are uninformed about the degree of product standardization c. there are many existing sellers, but it is difficult for new sellers to enter the market d. one dominant seller must negotiate with one dominant buyer e. there are many sellers, and they produce a standardized product
What is the benefit of a high saving rate?
When the current state of the economy is such that Real GDP is equal to Natural Real GDP, the economy is in ____________________ . In this situation, the (actual) unemployment rate is ___________ the natural unemployment rate, and there is ________________ in the labor market
A) long-run equilibrium; equal to; equilibrium B) inflationary; less than; a shortage C) long-run equilibrium; greater than; equilibrium D) recessionary; greater than; a surplus E) recessionary; less than; equilibrium