Which of the following is consistent with secular deflation?
A) a persistently decreasing price level caused by money being withdrawn from the economy
B) a persistently increasing price level caused by several periods of economic growth with decreasing AD
C) a persistently decreasing price level caused by increases in government expenditures
D) a persistently decreasing price level caused by several periods of economic growth with stable AD
D
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Which of the following correctly lists the categories of factors of production?
A) machines, buildings, land, and money B) hardware, software, land, and money C) capital, money, and labor D) owners, workers, and consumers E) land, labor, capital, and entrepreneurship
The technique currently used to calculate the CPI implicitly assumes that over time consumers buy
A) relatively more of goods whose relative prices are rising. B) relatively less of goods whose relative prices are rising. C) the same relative quantities of goods as in a base year. D) goods and services whose quality improves at the rate of growth of real income.