The country of Epsilon has continuous strong economic growth and a steady price level. This situation is most likely the result of aggregate demand growing ________ aggregate supply
A) at the same pace as long-run
B) slower than long-run
C) slower than short-run
D) faster than long-run
A
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What do economists mean when they refer to inflation as "general increase in the prices of goods and services."
A. Some prices are rising, some prices are falling, and some prices are constant, but on average, prices are increasing. B. Some prices are rising, some prices are falling, and some prices are constant, but on average, prices are decreasing. C. All prices are rising. D. All prices are falling.
Which of the following represents the relationship between disposable income (DI), consumption (C), and saving (S)?
A) DI = C * S B) DI + C = S C) DI = C - S D) DI = C + S
If the Fed can ________ inflation expectations, it might achieve ________ inflation without ________ the unemployment rate
A) lower; lower; lowering B) raise; lower; raising C) lower; lower; raising D) raise; higher; lowering E) lower; higher; lowering
Refer to Table 2-14. What is Ireland's opportunity cost of producing one motorcycle?
A) 0.2 guitar B) 5 guitars C) 8 guitars D) 32 guitars