Inflation is an increase in the average level of prices of goods and services.
Answer the following statement true (T) or false (F)
True
On average, prices rise by the inflation rate, but some may rise faster or slower than the inflation rate.
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Refer to Table 2-15. What is George's opportunity cost of cultivating a garden?
A) one-half of a garden cultivated B) two lawns mowed C) two-thirds of a garden cultivated D) one and a half lawns mowed
Suppose a country experiences a change in weather patterns that makes farming more difficult. Which curve(s) in the aggregate demand and aggregate supply model would be affected, and which way would it (they) shift?
________ is a cost that changes with the quantity produced by the firm and is incurred by the firm in the short run.
A. Fixed cost B. Economic cost C. Variable cost D. Average total cost
If the production possibilities frontier of one trade partner ("Country A") is bowed out (concave to the origin), then increased specialization in production by that country will
A) increase the economic welfare of both countries. B) increase the economic welfare of only Country A. C) decrease the economic welfare of Country A. D) decrease the economic welfare of Country B. E) not affect the economic welfare of either country.