An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
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Which of the following is NOT directly included in U.S. GDP?
A) sales to tourists of beach umbrellas in Hilton Head, South Carolina B) ticket sales to Ripley's Aquarium in Gatlinburg, Tennessee C) sales of sandwiches at a Subway store in Bangor, Maine D) popcorn purchased by a movie theater chain in Georgia E) movie tickets purchased by consumers in Georgia
The long-run effect of a decrease in the growth rate of the quantity of money is a
A) higher real interest rate. B) lower nominal interest rate. C) higher inflation rate. D) higher nominal interest rate. E) lower real interest rate.
An economy of 25 million people has twenty percent of them engaged in research and development, where their productivity is 0.0056. The economy is on a balanced growth path, when suddenly a wave of immigration raises the population to 27 million
Assume that the new workers are immediately "on the job," and that the fraction engaged in R&D remains twenty percent. For the one period that begins with this population increase, the growth rate of output per person is ________. [Refer to the instruction above.] A) 4.3% B) 1.8% C) 3% D) 8%
The normal life cycle pattern of income
a. contributes to more inequality in the distribution of annual income and to more inequality in living standards. b. contributes to more inequality in the distribution of annual income, but it does not necessarily contribute to more inequality in living standards. c. contributes to less inequality in the distribution of annual income and to less inequality in living standards. d. has no effect on either the distribution of annual income or on living standards.