Stagflation Occurs When the

question 97

Multiple Choice

Stagflation occurs when the

• A) price level and real GDP are increasing at the same time.
• B) price level and real GDP are decreasing at the same time.
• C) price level is increasing and real GDP is decreasing.
• D) price level is decreasing and real GDP is increasing.

Interpret cost curves and their relevance to production and shutdown decisions.

Assess the role of economic profits and losses in market entry and exit decisions.

Understand the concept of shutdown point and how it affects firm's decisions.

Calculate firm's profit or loss based on cost data and market prices.