If the price level does not fall or only falls very slowly, then the result will be a prolonged period of
A. inflation whenever supply increases.
B. production below potential GDP.
C. production above potential GDP.
D. rapid price increases when demand changes.
Answer: B
Economics
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The above table gives assets and deposits for a (small) bank. The bank's deposits that are part of M1 are equal to
A) $3,100. B) $3,130. C) $1,600. D) $600. E) $30.
Economics
Based on the figure above, if the firm produces 7 cans per day, the firm ________ maximizing its profit and is ________
A) is; incurring an economic loss B) is; making a normal profit C) is; making an economic profit D) is not; incurring an economic loss E) is not; making a normal profit
Economics