This topic contains a solution. Click here to go to the answer

Author Question: Critically evaluate the statement Honolulu is an expensive place to live. Therefore the inflation ... (Read 125 times)

urbanoutfitters

  • Hero Member
  • *****
  • Posts: 530
Critically evaluate the statement Honolulu is an expensive place to live. Therefore the inflation rate must be high in Honolulu.
 
  What will be an ideal response?

Question 2

If there is a rise in the price level, there is a(n) ________ movement along the AS curve because there is ________ in the quantity of real GDP supplied.
 
  A) upward; a decrease
  B) downward; an increase
  C) upward; no change
  D) upward; an increase
  E) downward; a decrease



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ttt030911

  • Sr. Member
  • ****
  • Posts: 315
Answer to Question 1

The statement confuses the price level with the inflation rate. Inflation is a flow variableit measures changes in prices from year to year, while the price level is a stock variable. The statement observes the price level, not the inflation rate.

Answer to Question 2

D




urbanoutfitters

  • Member
  • Posts: 530
Reply 2 on: Jun 30, 2018
Excellent


Mochi

  • Member
  • Posts: 300
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

For a complete list of videos, visit our video library