A one-time increase in the price level of oil followed by a one-time increase in aggregate demand produce...
What will be an ideal response?
a one-time increase in the price level
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When an economy is at its natural rate of unemployment, which of the following will be true?
A) Only structural unemployment as a result of technological change will exist in the economy. B) The labor force participation rate will be 100%. C) The unemployment rate will be greater than 0%. D) The unemployment rate will be 0%.
Over the past 70 years in the United States, employment in service-producing industries had increased significantly and employment in goods-producing industries has declined significantly. Economists would refer to this process as
A) the classical dichotomy. B) production parity. C) demographic imbalance. D) sectoral shifts.
Whenever the Democrats gain control of the Congress, spending on social programs increases; whenever Republicans gain control of the Congress, spending on defense increases. Hence, we know what the next party in control will do. This statement is an example of the
A. ceteris paribus fallacy. B. post hoc, ergo propter hoc fallacy. C. fallacy of stability. D. fallacy of inductive reasoning.
The major statistics that provide macroeconomists a picture of the health of an economy include the following, except
A. Real gross domestic product B. Inflation statistics C. Prices of oil and gasoline D. Unemployment data