Which of the following statements is correct?
A. Interest rates and bond prices vary directly.
B. Interest rates and bond prices vary inversely.
C. Interest rates and bond prices are unrelated.
D. Interest rates and bond prices vary directly during inflations and inversely during
recessions.
B. Interest rates and bond prices vary inversely.
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The analysis of oligopolistic behavior is difficult because
a. there are few real-world examples of oligopolies for economists to study. b. oligopolists make decisions independently of each other. c. firms in oligopolistic industries react to each other's behavior in many ways. d. economists have paid little attention to the topic in recent years and so have not yet applied to it the techniques of modern economic theory.
Explain “cost-push” inflation using aggregate demand–aggregate supply analysis.
What will be an ideal response?