When cost-push inflation starts, real GDP ________ and the unemployment rate ________
A) decreases; falls
B) does not change; falls
C) decreases; rises
D) does not change; does not change
E) increases; falls
C
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Which of the following scenarios is an example of an investment in human capital?
A. A firm replaces manually controlled production with a computer-controlled procedure. B. A chemical firm supports research to develop new chemicals. C. A firm purchases new equipment for a manufacturing process. D. A firm pays for workers to take college classes.
According to this Application, the recession of 1929 was primarily due to
A) an increase in aggregate supply resulting from European bank collapses. B) a decrease in aggregate supply due to rising gold prices. C) a decrease in aggregate demand resulting from decreases in government spending. D) a decrease in aggregate demand caused by the private sector.
The United States had the largest real GDP per person until the 2012 when the China's real GDP per person overtook and then exceeded that in the United States
Indicate whether the statement is true or false
If transfer payments increase then we would most likely conclude what about government spending as a result of this increase?
A. We cannot reasonably conclude anything about government spending. B. Since transfer payments have gone up this has caused government spending to decrease. C. Since transfer payments have gone up this has caused government spending to increase. D. Government spending would not change if transfer payments increase.