The slope of the budget line is determined only by the prices of the commodities purchased.
Answer the following statement true (T) or false (F)
True
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
If the demand and supply both increase equally, then the equilibrium price ________ and the equilibrium quantity ________
A) increases; increases B) increases; does not change C) does not change; increases D) increases; decreases E) decreases; does not change
Fill in the blank: ________ is another term for a decline in real GDP is
A) Deflation. B) Inflation C) Economic growth D) Recession E) Unemployment
Monopoly pricing prevents some mutually beneficial trades from taking place. These unrealized, mutually beneficial trades are
a. less of a concern for a monopoly than competitive market. b. offset by the higher profits earned by a monopolist. c. a function of the reduction in the quantity produced by a monopolist in comparison to a competitive market. d. All of the above are correct.