Which of the following would cause stagflation?
a. rising government expenditures
b. rising oil prices
c. a falling money supply
d. technical progress
b
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Keynesian economics focuses on the role of aggregate spending in determining the level of real GDP
a. True b. False Indicate whether the statement is true or false
In the long run, if the Fed decreases the growth rate of the money supply,
a. inflation will be lower. b. unemployment will be higher. c. real GDP will be lower. d. All of the above are correct.
In the presence of positive externalities, a free market will choose a price which is too ____ and produce an output which is too ____ compared with the social optimum.
A. high; low B. low; low C. high; high D. low; high
Research indicates that on average, state government unions have
A) raised wages to 35 percent above nonunionized government workers. B) reduce wages 20 to 30 percent below nonunionized private-sector and government workers. C) raised wages about 100 percent above similar workers in the nonunion private sector. D) have not significantly raised wages above similar workers in the nonunion sector.