A low rate of inflation, whereby prices increase so slowly from week to week that we hardly notice the change, is referred to as
a. zero inflation
b. creeping inflation
c. nominal inflation
d. real inflation
e. episodic inflation
B
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According to this Application, if you earn a salary of $80,000 in the first year and all prices decrease by half in the next 5 years, what will your nominal annual salary be in 5 years?
A) $8,000 B) $10,000 C) $20,000 D) $40,000
All of the following conditions, except one, are satisfied when a perfectly competitive market is in short-run equilibrium. Which is the exception?
a. No firm is suffering an economic loss. b. Each buyer purchases the quantity he wants at the market price. c. Each seller produces the quantity she wants at the market price. d. Suppliers want to sell the same quantity that buyers want to purchase. e. The market coordinates the independent decisions of all the participants.