Deflation refers to a situation where:
A. Price level falls, and could be caused by a shift of AD to the left
B. Price level falls, and could be caused by a decrease in aggregate supply
C. The rate of inflation falls, and could be caused by a shift of AS to the right
D. The rate of inflation rises, and could be caused by an decrease in aggregate demand
A. Price level falls, and could be caused by a shift of AD to the left
You might also like to view...
Refer to above figure. In the absence of trade, what is the country's consumer surplus?
What will be an ideal response?
With respect to monopolies, deadweight loss refers to the
A) socially unproductive amounts of money spent to obtain or acquire a monopoly. B) net loss in consumer and producer surplus due to a monopolist's pricing strategy/policy. C) lost consumer surplus from monopolistic pricing. D) none of the above