Which of the following statements about supply curves is CORRECT? I. A supply curve also can be a marginal cost curve. II. A supply curve tells the quantity of other goods and services that sellers must give up to produce another unit of the good.
A) I only
B) II only
C) both I and II
D) neither I nor II
Question 2
Suppose that the price level was 100 in 2011, 110 in 2012, and 130 in 2013. Over these three years
A) deflation occurred at an accelerating rate.
B) the inflation rate was positive but slowing.
C) prices were stable.
D) the inflation rate was positive and accelerating.
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