In response to the financial crisis which followed the housing bubble collapse, policy-makers feared stimulating demand would cause:
A. low economic growth despite low inflation and low unemployment.
B. high inflation despite high economic growth and low unemployment.
C. high inflation despite low economic growth and high unemployment.
D. high unemployment despite low inflation and low economic growth.
Answer: C
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Which of the following is most likely to be a fixed cost for any firm?
a. the monthly electric bill b. sales taxes c. shipping and postage costs d. rent on office space e. charitable donations
A monopolist can charge any price it wants to for a product, because it has no competitors. What constrains price for a monopoly?
a. Demand b. Copyright c. Quality d. Quantity
What does the "invisible hand" refers to?
Some nutritionists consider junk food or eating junk food an example of:
A. public goods. B. merit goods or activities. C. demerit goods or activities. D. positive externalities.