Which of the following was observed in the U.S. during the 1970s, when the economy faced a series of adverse supply shocks?
a. The economy experienced deflation
b. There was a massive increase in real GDP
c. Total output declined and the price level increased
d. Total ouput increased thereby driving up the price level
c
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Which of the following statements is CORRECT?
A) A change in the quantity demanded means a shift in the demand curve. B) A change in demand means a movement along the demand curve. C) A change in demand and change in quantity demanded means the same thing. D) A change in demand means a shift in the demand curve while change in the quantity demanded means a movement along the demand curve.
The New York Yankees are the winningest team in all of professional sports history. When interviewed after sweeping a World Series, the Yankee manager always says that, "To me, this win is the sweetest of them all.". To an economist, it means that
a. the marginal utility of the last win is greater than the total utility of all previous Yankee World Series wins b. the law of diminishing marginal utility applies here c. the law of diminishing marginal utility doesn't apply here d. the manager engages in interpersonal comparisons of utility e. consumer surplus increases with each win
A monopoly can arise when a large firm in an industry is able to take advantage of economies of scale in a way that leads to lower production costs and lower consumer prices
a. True b. False Indicate whether the statement is true or false
Explain the relationship between the budget constraint and indifference curve at a consumer's optimum