Most economists believe that substitution behavior by consumers causes inflation measured by the Consumer Price Index (CPI) to overstate the true rate of inflation
a. True
b. False
A
You might also like to view...
Figure 4.5 illustrates a set of supply and demand curves for hamburgers. A decrease in demand and a decrease in quantity supplied are represented by a movement from
A) point a to point c. B) point d to point b. C) point b to point c. D) point c to point a.
As a firm in monopolistic competition sets the price for its product, the firm faces a tradeoff between
A) supply and demand. B) efficiency and equity. C) internal and external economies of scale. D) price and the quantity it can sell. E) its marginal revenue and its price.
Which of the following items is included in M2?
a. credit cards b. money market mutual funds c. corporate bonds d. large time deposits
In the mathematical formulation of the short-run production function:
A) the quantity of output is usually assumed to be fixed. B) the quantity of capital employed is usually assumed to be fixed. C) the quantity of both labor and capital employed are usually assumed to be fixed. D) the quantity of both labor and capital must be allowed to vary so that output can vary in the short run.