When the economy is using all of its factors of production, the aggregate supply curve is vertical
Indicate whether the statement is true or false
TRUE
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The government safety net creates ________ problem because risk-loving entrepreneurs might find banking an attractive industry
A) an adverse selection B) a moral hazard C) a lemons D) a revenue
A common element in all of the banking crisis episodes in different countries is
A) the existence of a government safety net. B) deposit insurance. C) increased regulation. D) lack of competition.
Evidence from the time period 1960-1980 indicates that inflation in the United States resulted from
A) an employment target that was set too high. B) the government's inability to sell bonds to the Fed. C) an expansion in the money supply to finance federal government expenditures. D) the excessive sale of government bonds to the public.
In the first years of a professional athlete's career, the athlete is "under reserve," which means that he or she cannot negotiate with other teams. This implies that, everything else equal,
A) the player's salary is probably higher than it otherwise would be. B) the player's salary is probably lower than it otherwise would be. C) the player's salary is probably the same as it otherwise would be. D) the player is not hired by the team.