You're the president of the United States and your economic advisor tells you that the economy is in a state of high inflation, high unemployment, and low growth. You know then that your advisor is talking about
a. stagnation
b. deflation
c. depression
d. stagflation
e. prosperity
D
You might also like to view...
The fact that international specialization and trade based on comparative advantage can increase world output is demonstrated by the reality that
A. a nation can consume more than it can produce only by going into debt. B. only one of two nations engaged in trade can consume more than it produces. C. both of two nations can consume more than they produce if they engage in trade. D. the production possibilities frontiers of any two nations are identical.
Positive economics is a method of inquiry that attempts to explain the observable, and is limited to verifiable statements, while normative economics suggests a course of action that we should take based on a particular set of values and preferences
a. True b. False Indicate whether the statement is true or false
The ability to pay principle suggests that: a. traditional exemptions should be removed since they are more frequently used by people with ability to pay more taxes. b. people with different levels of income should be treated in the same manner
c. individuals receiving the benefits should be those who pay for them. d. those with the greatest ability to pay taxes should pay more than those with the least ability to pay taxes.
If the price of inputs falls and the government deficit rises:
a. Aggregate demand rises, and aggregate supply falls. b. Aggregate demand rises, but aggregate supply does not change. c. Aggregate demand falls, and aggregate supply rises. d. Aggregate demand and aggregate supply rise.