The term economists use to describe a situation in which the economy's overall price level is rising is
a. growth.
b. inflation.
c. recession.
d. expansion.
b
You might also like to view...
In a model with money neutrality, how much should the money supply be increased to obtain a 1% increase in nominal output?
A) -1% B) between 0 and 1% C) 1% D) It cannot be done.
If the Federal Reserve buys $3 billion worth of Japanese yen and sells $5 billion of euros, how does this affect the official settlements balance?
A) Falls by $2 billion B) Rises by $2 billion C) Rises by $3 billion D) Falls by $5 billion
A manager of a firm with market power faces the marginal revenue product and average revenue product curves shown below. The firm incurs weekly fixed costs of $1,800. The firm employs a single variable input, labor, which costs $600 per worker each week. ss
Given the above, in profit-maximizing (or loss-minimizing) equilibrium, the firm's total variable costs are
A. $400. B. $12,000. C. $6,000. D. $600. E. none of the above
The percentage change in the demand for one good divided by the percentage change in the price of a related good is the
A) price elasticity of demand. B) price elasticity of supply. C) cross price elasticity of demand. D) income elasticity.