In periods of inflation, wages generally increase to compensate for higher prices
Indicate whether the statement is true or false
TRUE
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Expansionary monetary policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be relatively ________ and real GDP to be relatively ________
A) lower; higher B) higher; higher C) lower; lower D) higher; lower
National income equals gross national product minus
A) inventories. B) changes in inventories. C) depreciation. D) imports.
In a competitive price-searcher market, the marginal revenue of the firm will always be
a. a horizontal line. b. greater than price. c. less than price. d. equal to price.
A study of consumers in an area found that as family income increased from $25,000 per year to $35, 000 per year, other factors held constant, the number of houses purchased increased from 7,000 per year to 11,000 per year. This finding indicates an income elasticity of demand coefficient for housing over this family income range of:
A. 0.22. B. 0.75. C. 1.33. D. 4.50.