To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change.
B. increase.
C. decrease.
D. either increase or decrease depending on the relative shifts of AD and AS.
Answer: C
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U.S. educational achievements ________
A) began to stagnate in the 1970s B) have always fallen behind our European and Asian counterparts C) have not had a measurable effect on U.S. growth rates D) have not been duplicated outside the U.S.
A situation is efficient if it is:
A. possible to find a transaction that will make at least one person better off, even if others are made worse off. B. possible to find a transaction that will make at least one person better off without harming others. C. possible to find a transaction that will make everyone better off. D. not possible to find a transaction that will make at least one person better off without harming others.
Label the graph below with respect to inflation, disinflation, and deflation.
Which of the following is not an external determinant of organizational architecture?
A. Administrative control systems B. Government regulations C. Technology D. Markets