An increase in aggregate demand will result in inflation.
Answer the following statement true (T) or false (F)
True
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The figure above shows the market for umbrellas in Sunville. When the market for umbrellas in Sunville is in equilibrium, what is the consumer surplus?
A) $30 B) $9,000 C) $18,000 D) $16,000
Use the above table. Based on the information in the table, artisan bread is a(n)
A) normal good. B) necessary good. C) inferior good. D) negative good.
When the inflation rate of a country is high over a lengthy time period,
a. the year-to-year variability in the rate of inflation is generally small. b. the year-to-year variability in the rate of inflation is generally large. c. decision makers will be able to forecast future rates of inflation accurately. d. there is no reason to believe that the inflation will exert harmful side effects on real output and the prosperity of the country.
In a certain city, the local government regulates the destruction of historic buildings and provides tax breaks to owners of historic buildings who restore them. These government policies
a. reflect the fact that restored historic buildings convey a positive externality. b. reflect the fact that the destruction of historic buildings conveys a positive externality. c. are likely to worsen the market failure that is associated with historic buildings and the restoration of such buildings. d. are likely to decrease the well-being of society as a whole.