One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired.
B. prices tend to adjust more quickly downward than upward.
C. wages are sticky downward.
D. input prices increase with output prices.
Answer: C
You might also like to view...
A corporation has been steadily losing money on one of its product lines. The factory used to produce that brand cost $20 million to build. The firm now is considering an offer to buy that factory for $15 million. Which of the following statements about the decision to sell or not is correct?
a. The firm should turn down the purchase offer because the factory cost more than $15 million to build. b. The $20 million spent on the factory is a sunk cost that should not affect the decision. c. The $20 million spent on the factory is an implicit cost that should be included in the decision. d. The firm should sell the factory only if it can reduce its costs elsewhere by $5 million. e. The firm's opportunity cost would be $35 million if it decides to sell the factory.
All financial intermediaries are financial institutions, but not all financial institutions are financial intermediaries
a. True b. False Indicate whether the statement is true or false
Bank A has $25,500 in required reserves. The required reserve ratio is 10 percent. Bank A has checkable deposits of
A) $2,550. B) $255,000. C) $2,550,000. D) $25,500.
Professor's economics students are constructing models for how gasoline prices change. Maria's model has very realistic assumptions and is quite complex. Anna's model is less complicated and less realistic. Maria's model correctly predicts gas price increases 5% of the time. Anna's model predicts correctly 15% of the time. On the basis of usefulness or "goodness," Professor will give which student's model the higher grade and why?
A. Maria's model gets the higher grade because it is more realistic. B. Anna's model gets the higher grade because it predicts accurately more often. C. Maria's model gets the higher grade because it is more complex. D. Anna's model gets the higher grade because it is simpler.