Supply-side inflation is the rise in price level caused by slow growth (or decline) of aggregate supply.
Answer the following statement true (T) or false (F)
True
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Which of the following counties are largely dependent on trade with the United States?
a. China and Japan b. U.K. and Germany c. Canada and Mexico d. France and Belgium e. Canada and U.K
Taxation may improve the social welfare when the taxed good
a. is socially undesirable (like, in some views, liquor and pornography). b. imposes negative externalities. c. is overproduced under a free-market system. d. All of the above are correct.
Which of the following is not true with regard to the burden of the U.S. national debt?
A. The debt does burden future generations to the extent that it is sold to foreigners. B. Budget deficits are not appropriate for stabilization purposes under any circumstances. C. The debt will reduce the nation’s capital stock if incurred during a fully employed economy. D. The large deficits of the 1980s and early 2000 were particularly worrisome because they were not attributable to recessions.
The situation in which the marginal product of labor is greater than zero and declining as more labor is hired is called the law of: a. negative response
b. inverse return to labor. c. diminishing returns. d. demand.