Persepolis Vocab

Which change will result in an increase in both the equilibrium price and quantity of the good? Supply Demand Increase Increase Increase No change No change . Increase Decrease Increase Decrease Decrease

No change Increase

With an increase in the real interest rate, consumption and real GDP will most likely change in which of the following ways? Increase Increase Increase Decrease Decrease Increase Decrease Decrease No change Increase

Consumption: DECREASE . Real GDP: DECREASE

Hyperinflation is typically caused by High tax rates that discourage work effort Continuous expansion of the money supply to finance government budget deficits Trade surpluses that are caused by strong protectionist policies Bad harvests that lead to widespread shortages A large decline in corporate profits that leads to a decrease in production

Continuous expansion of the money supply to finance government budget deficits

The official unemployment rate understates the unemployment level in the economy because the official unemployment rate Ignores the duration of unemployment Ignores underemployed and discouraged workers Includes jobs created by the underground economy Excludes all unemployed teenagers Excludes frictionally unemployed workers

Ignores underemployed and discouraged workers

Unlike a market economy, a command economy uses Consumer sovereignty to make production decisions Its resources more efficiently Price signals in economic decision making The popular vote in making resource allocation decisions

More centralized planning in economic decision making