The term inflation is used to describe a situation in which
a. the overall level of prices in the economy is increasing.
b. incomes in the economy are increasing.
c. stock-market prices are rising.
d. the economy is growing rapidly.
a
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A useful rule of thumb is that standard errors are expected to shrink at a rate that is the inverse of the:
A. square root of the sample size. B. product of the sample size and the number of parameters in the model. C. square of the sample size. D. sum of the sample size and the number of parameters in the model.
In the basic Keynesian model, a tax increase:
A. reduces short-run equilibrium output. B. increases potential output. C. reduces potential output. D. increases short-run equilibrium output.
Suppose the supply of good X is given by QSx = 10 + 2Px. How many units of good X are produced if the price of good X is 20?
A. 30. B. 20. C. 10. D. None of the statements associated with this question are correct.
What concept does the following formula express?
a. autonomous change in consumption spending
b. marginal propensity to consume
c. marginal propensity to save
d. equilibrium in the aggregate expenditure model