If the actual price level is higher than the expected price level, the economy will:
a. have no structural unemployment.
b. experience a recession
c. experience stagflation.
d. expand output in the short run.
e. have no seasonal unemployment.
d
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How do RBC economists face the business cycle fact that inflation is procyclical?
A) They argue that even though inflation doesn't fit their theory, everything else does, and inflation is not important. B) They note that inflation would not be procyclical if monetary policy were conducted properly. C) They argue that inflation is procyclical only because monetary policy shocks are the main cause of business cycles. D) They use alternative statistical methods that suggest that inflation is countercyclical.
Input-output analysis was developed by Wassily Leontief
a. True b. False Indicate whether the statement is true or false
The opportunity to increase profitability is the primary reason that firms decide to export.
a. true b. false
Social regulation is focused on all of the following EXCEPT
A. the impact of production on the environment and society. B. better working conditions, and safer and better products. C. ensuring costs are minimized and benefits are maximized. D. a better quality of life through a less polluted environment.