In a persisting demand-pull inflation...
What will be an ideal response?
short-run aggregate supply decreases and aggregate demand increases
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This type of unemployment reflects the normal amount of unemployed workers who possess skills that will enable them to find another job
A) cyclical unemployment B) frictional unemployment C) structural unemployment D) None of the above answers is correct.
Because resources tend to be specialized, increased production of military goods tends to
a. decrease the opportunity cost of more military goods. b. increase the opportunity cost of more non-military goods. c. increase the opportunity cost of more military goods. d. change the position of the production possibilities curve. e. alter the slope of the production possibilities curve.
Membership in the Group of Five consists of both developed and developing countries.
Indicate whether the statement is true or false.
Some poor countries appear to be falling behind rather than catching up with rich countries. Which of the following could explain the failure of a poor country to catch up?
a. The poor country has outward-oriented trade policies. b. The poor country allows foreign direct investment. c. The poor country has poorly developed property rights. d. All of the above are correct.