Multiple Choice
One In the News article titled "Everything Is on Sale and That's Not Good" suggests that deflation
A) Harms economic growth due to lower profits,more layoffs,and less spending that create a self-reinforcing cycle.
B) Harms the economy because bankruptcies decrease.
C) Harms sellers only,but not buyers since they get better deals without worries of job losses.
D) Results in higher interest rates that further slow the economy.
Correct Answer:

Verified
Correct Answer:
Verified
Q56: Assuming the economy is at full employment,a
Q57: Assume the equilibrium level of output is
Q58: If business inventories decrease below desired levels,then
Q59: If the MPC = 0.80,the total change
Q60: Suppose an economy has an upward-sloping AS
Q62: Injections include all of the following except<br>A)Saving.<br>B)Exports.<br>C)Government
Q63: Classical economists believe aggregate spending adjusts quickly
Q64: The cumulative decrease in total spending resulting
Q65: The formula for the multiplier is<br>A)1/(1 -
Q66: Because saving is a leakage,sudden additional saving