Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30.
B. exactly 60.
C. fewer than 30.
D. exactly 30.
Answer: A
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Cyclical unemployment is:
A. long-term and chronic unemployment that exists even when the economy is producing at a normal rate. B. short-term unemployment that is associated with the process of matching workers with jobs. C. the additional unemployment not captured in official statistics resulting from discouraged workers and involuntary part-time workers. D. the extra unemployment that occurs during periods of recession.
In recent years, a monetary growth rule has fallen out of favor because
A) the close relationship between movements in M1 and movements in real GDP has become weaker. B) it is believed that active monetary policy destabilizes the economy and makes the business cycle worse. C) the growth rate of GDP has been highly unstable. D) the growth rate of M1 has become more stable.
Declining real GDP for two quarters in a row is often called a recession
Indicate whether the statement is true or false
Demand pull inflation occurs when the:
A. price of a key input increases suddenly. B. price level changes in response to changes in the business cycle. C. price of necessity goods increases suddenly. D. business cycle becomes sporadic and unpredictable.