Which of the following is correct?
a. A period of hyperinflation is a period of extraordinarily low inflation.
b. A period of deflation is any period during which the inflation rate is decreasing.
c. In the 1970s, U.S. inflation averaged about 7.8 percent per year
d. All of the above are correct.
c
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The market system is also called the price system because
A) rising prices are the signal to producers to offer more of a particular good. B) people pay money in markets. C) everything has a price tag. D) inflation is a significant problem.
If price elasticity of demand is -0.5,
a. a 1% decrease in quantity demanded leads to a 0.5% decrease in price b. a 1% decrease in price leads to a 0.5% increase in quantity demanded c. a 50% decrease in price leads to a 1% increase in quantity demanded d. a 50% decrease in price leads to a 100% increase in quantity demanded e. demand is elastic