A sudden change in the normal behavior of inflation, unrelated to the nation's output gap, is called:
A. inflation inertia.
B. long-run equilibrium.
C. short-run equilibrium.
D. an inflation shock.
Answer: D
You might also like to view...
One of the fundamental problems a cartel faces is
A) to determine how much each producer will decrease its output. B) to determine how much each producer will increase its output. C) to determine how much each producer will lower it price. D) to determine how much each producer will lower its profit.
If a nation's imports exceed its exports: a. net exports will be positive
b. GDP will be less than the sum of consumption, investment, and government purchases. c. GDP will be greater than the sum of consumption, investment, and government purchases. d. none of the above apply.
What are the functions of money?
a. Medium of exchange, store of value, unit of account, standard of deferred payments b. Payment of credit, store of debt, unit of account, medium of exchange c. Medium of exchange, store of debt, unit of account, standard of deferred payments d. Payment of credit, store of value, unit of account, medium of exchange
Which of the following items is most likely to be an implicit cost of production?
a. the "competitive rate" salary the owner of the business pays herself for services provided b. property taxes on a building owned by the firm c. rental payments for a building utilized by the company and rented from another party d. the interest income foregone on the equity capital invested by owners