If relative prices are changing, we can definitely state that
What will be an ideal response?
1) some prices may be rising and some may be falling
2) a particular good's price has become more or less expensive in comparison to other goods
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_____ are elements of fiscal policy that automatically change in value as national income changes
a. Statistical discrepancies b. Exchange rates c. Budget deficits d. Automatic stabilizers e. Supply-side shocks
Which of the following can happen?
a. Prices are rising and the inflation rate is negative but rising. b. Prices are falling and the inflation rate is positive and falling. c. Prices are falling and the inflation rate is positive and rising. d. Prices are rising and the inflation rate is positive but falling. e. Prices are rising and the inflation rate is negative and falling.
A seller is willing to sell 5 units of a good at a minimum price of $1 per unit. The reservation value of the seller in this case is:
A) $1. B) $5. C) $6. D) $10.
If a country is currently borrowing more from the rest of the world than it is lending to the rest of the world, the country is a
A) net borrower. B) debtor nation. C) net lender. D) creditor nation.