The Great Stagflation of 1973-1980 was characterized by a high rate of inflation combined with the recession or stagnation of economic output that occurred during this time period. A major cause was the increase in oil prices
Indicate whether the statement is true or false
true
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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
In the figure above, the dark triangle is the
A) consumer surplus. B) deadweight loss. C) producer surplus. D) total cost. E) economic profit.
Government allocation of pollution rights cannot be efficient if polluters cannot be easily identified and monitored
a. True b. False
If you hear an economist argue that the economy does not experience business cycles but merely experiences variations in economic activity over time, you know that economist belongs to the school of
a. real business cycle theory b. Keynesian economics c. production possibilities growth theory d. accelerator cycle theory e. capital-based, long run growth theory