Which of the following is an example of the "shoe-leather costs" of inflation?
A) a rise in the cost of primary raw materials, like leather for shoes
B) an artificial rise in the capital gains tax
C) the need to take more trips to the bank
D) miscalculations due to money illusion
E) All of the above
C
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Many state and local governments find themselves faced with increasing retirement expenditures for retired government employees. These increasing expenditures will ________ GDP because they are categorized as ________
A) increase; government purchases B) increase; gross private domestic investment C) decrease; state and local government purchases D) not change; transfer payments.
Refer to the above figure. Suppose the demand curve shifts from DA to DB, while the supply curve remains at SA. Which of the following statements is FALSE?
A) There has been an increase in demand. B) Supply has increased. C) More consumers in the market might have caused the demand curve to shift. D) The new equilibrium price is P2, and the new equilibrium quantity is F.