Deflation refers to
A) a falling price level. B) a decrease in the rate of inflation.
C) Both A and B are correct. D) None of the above is correct.
A
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Which of the following problems does not affect small firms:
a. scarcity of appropriately-skilled workers b. consumer preference for imported products c. adapting modern technology consistent with the scale of output d. government officials' preference for larger firms e. all of the of the above are problems for small firms
The proportion of deposits that banks are legally required to deposit with the central bank are called:
a. discount requirements b. deposit requirements c. reserve requirements d. monetary requirements
Keynes believed that
A) the internal structure of the economy is extremely competitive and that wage-price flexibility exists. B) monopolistic elements in the economy prevent immediate and sharp price declines in response to falling demand. C) even though there are monopolistic elements in the economy, wage-price flexibility exists. D) in spite of the competitiveness of the economy, wage-price flexibility does not exist.
GDP does not include which of the following activities?
A. Businesses installing anti-pollution equipment B. Households spending to enhance security of their neighborhoods C. Couples remodeling their own homes D. Families eating out in restaurants