Stagflation occurs when the economy experiences:
A. low unemployment and low inflation.
B. high unemployment and rapid inflation.
C. low unemployment and rapid inflation.
D. high unemployment and low inflation.
Answer: B
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An increase in expected inflation will shift the short-run Phillips Curve
Indicate whether the statement is true or false
It is argued that the market will
A. not produce a nonexcludable public good. B. produce the socially optimal output of a nonexcludable public good. C. produce too much of a nonexcludable public good. D. produce a nonexcludable public good if marginal social benefits are equal to marginal private benefits. E. b and d
The money multiplier is the ratio of
a. bank reserves to bank deposits. b. the change in the money supply to the change in the monetary base. c. the money supply to the monetary base. d. bank deposits to bank reserves. e. both b and c.
Which of the following statements regarding the Lorenz curve is FALSE?
A) A Lorenz curve is a geometric representation of the distribution of income. B) A Lorenz curve that is perfectly straight represents complete income equality. C) The less bowed is a Lorenz curve, the less equally income is distributed. D) The more bowed is a Lorenz curve, the more unequally income is distributed.