If there is persistent inflation
A. long-run aggregate supply is constant.
B. long-run aggregate supply is growing at a slower rate than aggregate demand.
C. long-run aggregate supply is growing at a faster rate than aggregate demand.
D. there is an excess of total planned expenditures.
Answer: B
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Archie can paint 5 backyard fences or repair 2 cars in 8 hours, while Austin can paint 4 backyard fences or repair 2 cars in 8 hours. Identify the correct statement
a. Archie is relatively better in repairing cars. b. Archie is relatively better in painting fences. c. Austin is relatively better in painting fences. d. Archie and Austin are equally good in painting fences. e. Neither Archie not Austin are good in repairing cars.
In what way do public goods give rise to positive externalities?
Which of the following is a question answered with positive economic analysis?
A. Should the college provide more financial aid assistance? B. Should the college offer free parking for students? C. If the college increased tuition, will class size decline? D. Should the college cut tuition to stimulate enrollment?
Fixing exchange rates and limiting the convertibility of currency will
a. improve international trade. b. increase the ability of people to gain from specialization. c. lead to black markets and less trade. d. increase productivity and living standards.