Which of the following scenarios can cause cost-push inflation?
A. an increase in net taxes
B. a major union wage settlement that increases average wage levels
C. a decrease in real interest rates
D. an increase in government purchases
B. a major union wage settlement that increases average wage levels
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The income effect of an increase in the price of peaches is
A) the change in the quantity of other fruit demanded that results from the impact of the price change on purchasing power, holding all other factors constant. B) the change in the quantity of peaches demanded that results from the effect of the change in price on consumer purchasing power, holding all other factors constant. C) the change in the demand for peaches as a result of the change in the price of peaches, holding all other factors constant. D) the change in the quantity of peaches demanded that results from the price increase, making peaches more expensive than other fruit, holding constant the effect of the price change on consumer purchasing power.
Suppose Joe Rich owns his own company and does not pay himself a salary. This means the salary he could have earned in alternative employment is considered an implicit cost for the firm
a. True b. False Indicate whether the statement is true or false
The period of modern economic growth occurred from ________________________ onward.
a. 1776 b. the 1870s c. the 1920s d. the 1950s
Indifference curves are typically shaped like total utility curves
Indicate whether the statement is true or false