Secular deflation occurs when
A. aggregate demand remains unchanged while economic growth increases long-run aggregate supply.
B. aggregate demand increases at the same time there is no economic growth.
C. both aggregate demand and aggregate supply are shifting left.
D. there is no economic growth and aggregate demand falls.
Answer: A
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For country Gamma, the opportunity cost for producing 1 computer is 10 tons of steel. For country Beta, the opportunity cost for producing 1 computer is 6 tons of steel. Which country has the comparative advantage in the production of steel?
A) Gamma B) Beta C) Both have the comparative advantage in the production of steel. D) Neither country has the comparative advantage in the production of steel. E) More information is needed to determine which of the two nations has the comparative advantage.
Disposable income is not:
A. total income minus taxes. B. what consumers base their buying decisions on. C. the amount consumers have to spend on goods and services. D. income before tax.