High inflation that persists beyond the ending of expansionary policies is probably ________
A) demand-pull inflation
B) Humphrey-Hawkins inflation
C) cost-push inflation
D) a result of unemployment remaining below the natural rate
E) none of the above
C
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Resource use is efficient when production is such that marginal social benefit is
A) greater than marginal social cost. B) equal to marginal social cost. C) less than marginal social cost. D) at its maximum value.
According to the original Keynesian model, there would be counter-cyclical movements of the real wage rate in response to changes in aggregate demand because
A) firms react to nominal wages and workers respond to real wages. B) firms react to real wages and workers respond to the expected real wage. C) firms are on their labor demand curve and workers are off their labor supply curve. D) firms are off their labor demand curve and workers are on their labor supply curve.
The term underground economy refers to
a. the coal-mining industry b. all ore mining c. the subway system d. purely illegal activity e. market activity not reported to the government
?Which of the following options could be used to eliminate a recessionary gap?
A. Decrease government spending B. ?Decrease consumption C. Decrease investment D. ?Decrease taxes