A combination of high inflation and recession, usually resulting from a supply shock, is known as
A) hyperinflation.
B) disinflation.
C) stagflation.
D) depression.
C
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Spending on financial assets ________ counted as part of GDP ________
A) are not; because their purchase is not spending on goods or services B) are; as long as their purchase produces income C) are; because the cash exchanged represents an expenditure D) are not; because interest must be paid on them E) may be; as long as their value increases
If the market price of a product is $14 and all sellers are price takers, then which of the following is correct?
A) Each seller's total revenue line is graphed as an upward-sloping straight line. B) The demand curve for each seller's product is a downward-sloping straight line. C) Each seller can earn more total revenue by raising the price he or she charges above $14. D) The demand curve for each seller's product is a downward-sloping but not necessarily a straight line. E) Each seller's total revenue is graphed as an upside-down U-shaped curve.
A production possibilities curve is plotted for a nation producing chairs and tables. Which of the following will cause a parallel shift in the production possibilities curve?
A) An intensive training program that increases the productivity of employees engaged in the production of tables B) An intensive training program that increases the productivity of employees engaged in the production of chairs C) An increase in the price of both chairs and tables D) An increase in the availability of raw materials required for the production of both chairs and tables
Refer to Table 6-6. Based on the data in the table, between a price of $9.99 and $14.99, the demand for books is
A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic.