Which of the following is true?
a. Economists assume that there are no private property rights in a free market
b. A free market is also known as a fettered market.
c. A voluntary transaction means that all parties to the transaction must expect to benefit.
d. People always receive goods and services at a discounted price in a free market.
e. An economic growth is represented by an inward shift of the production possibility curve.
c
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Employees at the university have negotiated a 5 percent increase in wages for the next year, based on their inflation expectations. If inflation is actually 4 percent over the next year, which of the following will occur?
A) Unemployment of university employees will fall. B) The decrease in inflation is expected. C) Real wages for university employees will rise. D) Inflation will be 5 percent the following year.
A change in consumers' expectations about the future will shift both the aggregate expenditure curve and the aggregate demand curve
a. True b. False Indicate whether the statement is true or false