A large increase in oil prices is an example of:
A. excessive aggregate spending.
B. inflation inertia.
C. a favorable inflation shock.
D. an adverse inflation shock.
Answer: D
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Consumption per worker is 72, depreciation is 12.5%, and capital per worker is 64. Given the production function y = 20 , show that this economy is in a steady state
If the saving rate should double, what is the new steady-state level of consumption per worker?
Mid-1960s amendments to the Social Security Act created
a. managed care. b. Medicare and Medicaid. c. major medical insurance. d. Blue Cross and Blue Shield. e. tax exemptions for health insurance as an employee benefit.
When the minimum wage is set above the equilibrium market wage,
a. there will be a shortage of labor at the minimum wage b. it will have no effect on the quantity of labor employed c. the unemployment rate will rise d. the quality of the labor force will increase e. the unemployment rate will fall
A budget deficit occurs when tax revenues are less than government spending.
Answer the following statement true (T) or false (F)