During very bad recessions, if demand rises, aggregate supply will rise in the form of higher _____.
Fill in the blank(s) with the appropriate word(s).
output
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An economics professor, upset about the rising cost of textbooks, proposed that his department purchase 50 copies of a statistics book so the students in the statistics class would not have to purchase their own books but rather could borrow a book for the semester and then return it for the next class to use. Which of the following strategies would not prevent a common resource problem with the
textbooks? a. Students will be required to pay a deposit for the textbook, which is refundable at the end of the semester when the book is returned in good condition. b. The textbooks are placed in a common area of the department so students can borrow and return them as needed. c. Students must sign a form agreeing to return the book or pay a fine equal to the replacement cost of the book. d. The textbooks are placed in the professor's office and will only be given to students who are registered members of the class. These students will not receive their final course grades until the books are returned.
The conventional monetary policy to fight inflation would be to
A. increase the rate of monetary growth. B. decrease the rate of monetary growth. C. run budget deficits. D. run budget surpluses.
Assume a nation's current production possibilities are represented by the curve AB in the above diagram. Positive economic growth would best be indicated by a:
A. shift in the curve from AB to CD. B. movement from point 3 to point 4. C. shift in the curve from AB to EF. D. movement from point 1 to point 2.
Which of the following individuals first discovered the relationship between unemployment and inflation for the United States?
A) Solow and Friedman B) Samuelson and Solow C) Friedman and Phillips D) Friedman and Phelps