If the fluctuations in the economy’s real growth rate from year to year are caused primarily by variations in the rate at which aggregate demand increases, then data would show the most rapid inflation occurs when
A. unemployment is the highest, and the lowest inflation occurs when unemployment is the lowest.
B. AS grows most rapidly, and the lowest inflation occurs when AS grows most slowly.
C. AD rises most slowly, and the lowest inflation occurs when AD rises most rapidly.
D. output grows most rapidly and the lowest inflation when output grows most slowly.
Answer: D
You might also like to view...
An increase in spending that results from expansionary ________ policy causes the interest rate to ________, everything else held constant
A) fiscal; rise B) fiscal; fall C) incomes; rise D) incomes; fall
Which of the following can be measured by the level of real GDP per person?
a. productivity and the standard of living b. productivity but not the standard of living c. the standard of living but not productivity d. neither the standard of living nor productivity
The three main crops of the nation from the end of the Civil War to the turn of the century (1900) were (1) ______, (2) __________; and (3) _________.
Fill in the blank(s) with the appropriate word(s).
Earth Movers & Shakers operates 3 iron ore mines. The accompanying table shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Total Tons Per DayNumber of MinersMother Lode10025Scraping Bottom3010Middle Drift7515 The opportunity cost of moving one miner from Middle Drift to another mine is:
A. 3 tons per day. B. 5 tons per day. C. 1 ton per day. D. 4 tons per day.