Which of the Following Issues Will Economists Likely Agree About

question 84

Multiple Choice

Which of the following issues will economists likely agree about?

• A)The long-run achievable target rate of unemployment
• B)Estimates of potential income
• C)The relationship between the level of economic activity and inflation
• D)Outside of some range, too much spending causes inflation and too little causes a recession

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Definitions:

Variable Costs

Costs that vary in total dollar amount as the level of activity changes.

Short-Run Price

The price level of goods or services in a market that is determined over a short period, where some costs can be considered fixed.

Special Price

A discounted rate offered for a product or service outside of its standard pricing.

Differential Cost

The difference in total cost that will result from selecting one alternative over another in decision-making processes.