An economy that experiences decreasing real GDP and increasing prices is said to suffer from _____.
(A) Stagflation
(B) A depression
(C) A recession
(D) A business cycle
Ans: (A) Stagflation
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The basic truth that underlies the study of economics is the fact that we all face
A. risk. B. scarcity. C. death. D. taxes.
Based on Scenario 1 above critically evaluate the following statement. "Because of the productivity differential between the two men we can conclude that the young man has a comparative advantage in the production of everything over the older man
What will be an ideal response?
A tariff is a tax imposed by a government on its own exports
Indicate whether the statement is true or false
Provisions in the budget that cause government spending to rise or taxes to fall without legislation when GDP falls are known as
A) primary deficit enhancers. B) expansionary fiscal stimulus. C) non-political fiscal policy. D) automatic stabilizers.