One complication in the process of reducing inflation by creating recessions is that the price level
A. adjusts more quickly to recessionary gaps than to inflationary gaps.
B. does not apply as it does in inflationary gaps.
C. always rises.
D. rarely falls.
Answer: D
Economics
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In the above figure, the marginal propensity to consume (MPC) equals
A) 0.9. B) 0.75. C) 0.8. D) 0.85.
Economics
When a consumer shifts her purchases from product X to product Y, the marginal utility of
A) X falls and the marginal utility of Y will increase. B) both X and Y will decrease. C) X increases and the marginal utility of Y will fall. D) both X and Y will increase.
Economics