A situation in which output decreases while prices increase is often referred to as:
A. inflation.
B. negative economic growth.
C. a recession.
D. stagflation.
Answer: D
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By offering training to workers whose firms laid them off because of competition from foreign firms, the federal government is attempting to reduce
A) unnatural unemployment. B) frictional unemployment. C) structural unemployment. D) cyclical unemployment. E) seasonal unemployment.
The majority of payments made by the federal government are for
A. transfer payments. B. administrative expenses. C. foreign aid. D. defense purchases.
According to the quantity theory of money, inflation is caused by
A) the money supply growing slower than real GDP. B) GDP growing faster than the money supply. C) GDP growing at the same rate as the money supply. D) the money supply growing faster than real GDP.
The more time people have to adjust to a price change:
A. will not affect the elasticity of their response unless it is a luxury good. B. the less elastic their demand will be. C. the more elastic their demand will be. D. will not affect the elasticity of their response unless the good is a necessity.