The term "stagflation" refers to an economy with the simultaneous problems of
(a) rising inflation rates and falling unemployment rates.
(b) rising deflation and unemployment rates.
(c) rising inflation and unemployment rates.
(d) falling deflation and unemployment rates.
(c)
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Countries with high real GDP tend to have ________ infant mortality rates and ________ literacy rates than countries with low real GDP.
A. lower; higher B. higher; higher C. higher; lower D. lower; lower
Marginal cost is best defined as
A) the extra cost of producing one more unit of output. B) the profit earned from selling one more unit of output. C) the price received from selling one more unit of output. D) equal to producer surplus.
Last year, the nominal interest rate was less than the anticipated rate of inflation
A) This means that not enough loans were made by banks. B) This means that the real interest rate was negative. C) This means that the real interest rate was very high. D) This scenario is not possible.
Which of the following is not a problem for the price system allocating resources among different time periods?
a. Interest rates are used for a variety of purposes other than influencing investment. b. The market devotes too much to immediate consumption. c. Our market system leads to lesser real incomes for later generations. d. Our market system despoils irreplaceable natural resources.