The inflation rate
a. explains how prices are reacting to economic policies
b. indicates the level of prices charged by all firms in the economy
c. measures the annual percent increase in the average level of prices
d. measures how fast wages and incomes are rising
e. determines the prices that firms will offer to customers
C
You might also like to view...
Markets are
A) a mechanism through which prices of goods and services are determined by the forces of supply and demand. B) specific geographic locations. C) hypothetical constructs used to analyze how people form their tastes and preferences. D) places where people can inspect goods and services carefully.
Kayla faces risks and she pays a fee to ABC Company; in return, ABC Company agrees to accept some or all of Kayla's risks. ABC Company is
a. a mutual fund. b. an insurance company. c. a diversified company. d. an equity-financed company.
Refer to the graph shown. Assuming that the industry continues to operate under conditions of perfect competition and that the cost curves do not shift, in the long run this firm will produce:
A. 800 units of output. B. 1,400 units of output. C. 1,200 units of output. D. 1,000 units of output.
Contractionary fiscal policy ... aggregate demand and in the short run ... real GDP
What will be an ideal response?