Which of the following will most likely occur during the recovery phase of a business cycle?
A. Real GDP rises, and unemployment falls.
B. Real GDP declines, and inflation rises.
C. Interest rates rise, and the number of business failures rise.
D. Inflation rises, and employment falls.
Answer: A
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A political equilibrium can never be reached without voters, firms, politicians and ________
A) bureaucrats B) public costs C) indifference curves D) market prices
Which is true?
a. Brazil has seen an average decline in the number of children that the average Brazilian woman has b. on average, tall people are paid higher salaries c. As the Venezuelan govt seizes more foreign-owned businesses, her economic growth will decline d. all
Commercial banks create new money:
A. by issuing checks. B. when they increase their desired reserve/deposit ratio. C. when they buy government bonds from the Federal Reserve. D. through multiple rounds of lending.
The claim that lower environmental standards in foreign countries reduce industrial competitiveness for high standard countries is on firm theoretical ground because
A) higher environmental standards requirements raise the cost of production to a firm or industry abiding by the rules. B) there will be a race-to-the-bottom competition on environmental standards. C) the interests of firms that are subject to the high standards coincide with the nation's interests, one-for-one. D) environmental standards in most countries have gotten more lax over time.