Deflation is particularly bad for an economy in recession for all of the following reasons EXCEPT a-with deflation people spend less  expecting prices to be lower in the future b- the rising prices makes goods more expensive c- with deflation the value of assets declines while the value of loans does not - this lowers wealth and further depresses spending

In the short run, what is the impact on the price level and the level of real GDP of each of the following changes. Analyze graphically and explain. a) a decrease in the cost of a non labor input, such as oil or electricity. b) a decrease in interest rates in the U.S.(relatively to interest rates abroad) c) a decrease in the value of the U.S. dollar(dollar depreciates)

a. Potential GDP (LAS) is $200 then there is a(n) [(Click to select) b. Potential GDP (LAS) is $800 then there is a(n) [(Click to select) c. Potential GDP (LAS) is $850 then there is a(n) [(Click to select) gap of $ gap of $ gap of $

A real value will increase only when prices increase. Select one: True False If the real value for manufacturing sales increases then the nominal value must also have increased.  Select one: True False If nominal GDP is rising faster than real GDP then prices must be rising.  Select one: True False