To prevent demand-pull inflation,
A) firms must refuse to increase the money wage rate.
B) firms must refuse to increase the real wage rate.
C) the Fed must not let the quantity of money persistently rise.
D) the natural unemployment rate must increase.
E) real GDP must increase.
C
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In the U.S. in 2012 the percentage of the Americans living below the poverty line was about
A) 15 percent. B) 20 percent. C) 5 percent. D) 27 percent.
The United States has not had a surplus in the last 30 years.
A. True B. False C. Uncertain
Which of the following does not shift the supply of real loanable funds to the right (i.e., increase it)?
a. A rise in real income. b. An increase in wealth. c. Higher consumer indebtedness levels relative to income. d. All of the above increase the supply of real loanable funds.
When demand is inelastic,
A. selling one more unit of output causes marginal revenue to increase. B. the percentage change in quantity demanded will exceed the percentage change in price (in absolute value). C. quantity sold does not increase when price decreases. D. buyers are not very responsive to changes in the price of the product. E. selling one more unit of output cause total revenue to increase.