As long as the multiplier process is working, firms will meet additional demand without raising prices
a. True
b. False
Indicate whether the statement is true or false
False
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The natural rate hypothesis concludes that when the inflation rate increases, then in the long run there is
A) an upward movement along the short-run Phillips curve. B) an upward shift of the short-run Phillips curve. C) a downward shift of the short-run Phillips curve. D) no change at all in the short-run Phillips curve. E) a downward movement along the short-run Phillips curve.
Given that the firm only chooses to sell the no-name brand, how should it price its product?
a. Price low, sell to both users b. Price high, sell only to the professional chefs c. Price low, sell only to the professional chefs d. Price high, sell only to the home users
Which of the following is a depository institution?
a. An insurance company b. A credit union c. A finance company d. A pension fund e. A stock market
Which of the following is a basic point that Keynes made about consumption?
A) Consumption and disposal income are inversely related. B) When disposable income changes, consumption changes by a greater amount. C) Consumption is dependent upon disposable income. D) b and c E) all of the above