The variables on the vertical and horizontal axes of the aggregate demand and supply graph are
a. the price level and real output.
b. real output and employment.
c. employment and the inflation rate.
d. the value of money and the price level.
a
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Excessive creation of new money to finance a government budget deficit can lead to
A) stagflation. B) disinflation. C) hyperinflation. D) deflation.
When production efficiency does NOT occur,
i. an economy is producing at a point within its PPF. ii. there are unemployed resources. iii. allocative efficiency cannot occur. A) i only B) i and ii C) iii only D) i and iii E) i, ii, and iii
Explain what happens to the magnitude of price elasticity of demand as price increases along a straight-line demand curve.
What will be an ideal response?
Unemployment insurance:
A. varies widely across countries. B. has a set minimum in the US. C. is typically 32 weeks in the US, except for times of unusually high unemployment. D. All of these are true.