The clearest sign of inflation would be a(n)
a. increase in the price level.
b. increase in the quantity of total final output.
c. decrease in the quantity of total final output.
d. simultaneous increase in both output and prices.
a
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The demand for salt is probably more inelastic at generally prevailing prices than the demand for potatoes because
A) potatoes require salt but salt does not require potatoes. B) salt has long been a favorite target for taxation. C) salt is cheap relative to most users' incomes and has few good substitutes. D) salt will keep longer than potatoes before spoiling. E) there is so much potential salt in the ocean.
Which of the following is NOT considered investment?
A. A family builds a house in which it plans to live. B. A car dealer stores some of this year's models for next year. C. An individual purchases several pieces of antique furniture. D. A firm buys a computer for word processing.