If persistent inflation was due to declines in long-run aggregate supply, what pattern would be observed?
A) Only prices of services would increase; prices of goods would remain constant.
B) Increases in the price level would occur simultaneously with increases in real GDP.
C) Increases in the price level would occur simultaneously with decreases in real GDP.
D) Only prices of goods would increase; prices of services would remain constant.
C
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In 2015, the price of peanuts was rising, which led peanut butter buyers to expect the price of peanut butter would rise in the future
Consequently, in the current market for peanut butter there was ________ which resulted in ________ in the price of peanut butter and ________ in the quantity of peanut butter. A) an increase in demand for peanut butter; an increase; an increase B) an increase in supply of peanut butter; a decrease; an increase C) a decrease in demand for peanut butter; a decrease; a decrease D) a decrease in supply of peanut butter; an increase; a decrease
Which of the following is not a function of money?
a. Insurance against unexpected inflation. b. Legal tender. c. Insurance against expected inflation. d. Unvarying unit of value. e. None of the above is a function of money.