The total consumer surplus enjoyed by all consumers in a market
a. exceeds the market price
b. is measured by the area under the market demand curve
c. is measured by the area beneath the market price
d. is a Pareto improvement
e. is called market consumer surplus
E
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Explain the purpose of the following figure
What will be an ideal response?
Using the information in the table shown, what can be said about the rate of inflation?
A. Deflation occurred before 2007, then inflation occurred.
B. Deflation occurred until 2009, then inflation occurred.
C. Inflation occurred every year from 2005 to 2009.
D. Inflation was the largest from 2005 to 2006.
If the Fed is going to create an environment for economic progress, it should focus on
A) the regulation of financial institutions in order to control excessive risk taking. B) keeping interest rates low. C) shifting back and forth between expansionary and restrictive monetary policy in order to better control the growth of real GDP. D) the achievement of price stability.
If households and businesses correctly anticipate the inflation rate, the unemployment rate
A. will be the cyclical rate of unemployment. B. will be inversely related to the expected inflation rate. C. will be the natural rate of unemployment. D. will be positively related to the expected inflation rate.