The flat region of the aggregate supply curve reflects the Keynesian belief that:
a. both inflation and unemployment does not exist.
b. high growth rate of money supply poses problems in the economy.
c. unemployment is usually experienced amidst high real GDP.
d. government intervention in the economy aggravates the problems of inflation and unemployment.
e. inflation is not a problem when unemployment is high.
e
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Improved quality in health care services is partly responsible for increases in health care costs in the United States
Indicate whether the statement is true or false
The government giving the ownership of a pond to a citizen to reduce over fishing is a method to prevent _____
a. the free rider problem b. the tragedy of the commons c. asymmetric information d. deadweight loss
The relationship between consumption and disposable income is very unreliable and unpredictable.
Answer the following statement true (T) or false (F)
The likely result of an economy operating at full employment is:
A. cost-push inflation. B. demand-pull inflation. C. a lower rate of growth. D. hyperinflation.