Which of these would economists consider the worst?

A. inflation of 5%
B. deflation of 5%
C. depression
D. recession

Answer: C

Economics

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People complain that inflation increases the cost of goods and services and therefore reduces their purchasing power. If inflation and income grow at the same rate, is this complaint valid? Explain carefully

What will be an ideal response?

Economics

If a profit-maximizing firm finds that, at its current level of production, MR > MC, it will

A) earn greater profits than if MR = MC. B) increase output. C) decrease output. D) shut down.

Economics