Deflation refers to a situation where prices are generally falling. Why is deflation generally undesirable? Select one: a. It disadvantages creditors. b. None of the listed answers is correct. c. It reduces the value of debts. d. It redistributes real income. e. It might lead to a cumulative reduction in aggregate demand as firms and households wait for prices to fall further. Which of the following best describes the operation of automatic stabilisers? Select one: a. Some components of government spending inevitably increase when output falls. b. When saving increases, investment increases. c. When consumption falls, investment increases. d. The economy always tends toward full employment e. When consumption falls, exports increase. Consider a firm whose unit cost (the cost of producing one unit of output) is the same at all output levels. Which of the following statements is correct? Select one: a. Each isoprofit curve depicts the firm's profit for different outputs for a given price of the output good. b. Every price-quantity combination lies on an isoprofit curve. Isoprofit curves can be upward-sloping when at high profit levels. d. Isoprofit curves slope upward when the price is above the unit cost. e. None of the listed answers is correct. Which of the following statements is correct? Select one: a. None of the listed answers is correct. b. GDP can be measured either as the total spending on domestically produced goods and services, or the total value added in domestic production, or the sum of values from domestic production and imports Both exports and imports are included in the measurement of GDP. d. Government production is not included in the GDP. e. The value added of government production is computed using the price that public goods and services are sold at in the market Which of the following statements about the wage-setting curve is correct? Select one: a. Wage-setting curve is a horizontal line at a real wage w. b. None of the listed answers is correct. CA lower unemployment rate shifts the wage-setting curve to the left. d. An exodus of European workers due to Brexit would, ceteris paribus, result in a downward shift of the UK's wage-setting curve. e. At each point (U, W) on the wage-setting curve, the workers are choosing their best response effort level given the real wage (W) and unemployment rate (U)