A persistently declining price level resulting from economic growth and unchanged aggregate demand is called
A. supply-side deflation.
B. demand-side deflation.
C. ozian deflation.
D. secular deflation.
Answer: D
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Refer to Scenario 6.1. Suppose the friends are forced by government to combine their businesses and share what they make. With this revision to the scenario, the dominant strategy is for Tasha to work ________ and for Gloria to work ________
A) extremely hard; extremely hard B) extremely hard; somewhat hard C) somewhat hard; extremely hard D) somewhat hard; somewhat hard
An increase in the U.S. price level (foreign prices held constant) will cause a leftward shift in the aggregate demand curve.
Answer the following statement true (T) or false (F)
The table above represents five points on the production possibility frontier for the small country of Baca, which produces only rugs (measured in thousands) and wheat (measured in thousands of bushels): If the economy is currently at point A,
what is the opportunity cost of producing an additional 10,000 bushels of wheat? If the economy is currently at point B, what is the opportunity cost of producing an additional 10,000 bushels of wheat? What if the economy is currently at point D?
Why do you suppose that taxes are often used in place of effluent charges in order to combat pollution?
What will be an ideal response?