If there is inflation, then a firm that has kept its price fixed for some time will have a
a. high relative price. Relative-price variability rises as the inflation rate rises.
b. high relative price. Relative-price variability falls as the inflation rate rises.
c. low relative price. Relative-price variability rises as the inflation rate rises.
d. low relative price. Relative-price variability falls as the inflation rate rises.
c
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Trade
A. allows a person to consume at a point outside his production possibilities frontier. B. limits a person's ability to produce goods and services on her own. C. must benefit both traders equally. D. is based on absolute advantage.
In the _______ range of the aggregate supply curve, expansionary fiscal policy that causes aggregate ______ to increase will lead to a higher price level and a higher equilibrium level of real GDP. ?
A. ?Keynesian, supply B. ?Classical, demand C. ?Intermediate, demand D. ?Intermediate, supply