Inflation is an overall:
A. rise in prices in the economy.
B. decline in prices in the economy.
C. rise in prices in the economy, excluding those with historically volatile price changes.
D. decline in prices in the economy, excluding those with historically volatile price changes.
A. rise in prices in the economy.
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Using marginal utility theory, when the price of a gallon of milk falls, a consumer will buy
A) the same amount of milk as before and buy more of all other goods. B) more milk. C) more milk only if its marginal utility is increasing. D) more milk only if its marginal utility is constant.
Which of the following will not happen as a consequence of a monopolistically competitive firm suffering economic losses in the short run?
A) The firm will exit the industry if it continues to suffer economic losses. B) In the long run the firm will be able to charge a price that is greater than its average total cost. C) The firm's demand curve will shift to the right if it stays in business in the long run. D) The firm will break even if its stays in business in the long run.