Based on the graphs for an increase in aggregate demand and the Phillips curve, we can see that when aggregate demand is strong, ______.
a. RGDP is low
b. unemployment is high
c. inflation is low
d. inflation is high
d. inflation is high
You might also like to view...
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Suppose a duopoly had reached the monopoly outcome and then the first firm increased its production. If the second firm next increases its production, the second firm's profit ________ and the first firm's profit ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) increases; does not change
In a capitalist economy,
A. the state controls the means of production. B. the means of production are mostly owned by private individuals. C. economic decisions are centralized. D. government officials decide what to produce, how to produce it and who gets it.
Even though explicit contracts may lead to layoffs during recessions, explicit contracts may still be efficient because such contracts
A. guarantee that only the least-productive workers will be laid off. B. reduce negotiation costs. C. reduce unemployment effects. D. will equitably spread the layoffs among junior and senior workers.