If the price level should increase in the near term due to decreases in the short-run aggregate supply, the result would be
A) demand-pull inflation.
B) demand-pull recession.
C) cost-push inflation.
D) cost-pull expansion.
C
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Which of the following constitutes an implicit cost to the Asarta Manufacturing Company?
A. Payments of wages to its office workers B. Foregone interest income from using savings to pay for operating expenses C. Rent paid for the use of equipment owned by the Butters Machinery Company D. Payments using economic profits resulting from current production
Fred learns that a group, Butterfly Propaganda, is lobbying to get tax money to build little wooden buildings for migrating butterflies to stay in. He thinks this is a waste of money, and he feels pretty sure most people would agree with him and his desire to cut off the funding for Butterfly Propaganda. Why doesn’t Fred take action and challenge Butterfly Propaganda?
a. There is no way he could beat a powerful special interest group. b. Only elected representatives can pose a challenge to how tax dollars are distributed. c. The government sets the budget years in advance, and he would see no immediate change in funding. d. The personal cost of fighting them would far outweigh the cost of his few tax dollars that go to them.
If short-run equilibrium output equals 20,000 and potential output (Y*) equals 25,000, then this economy has a(n) ________ gap that can be closed by ________.
A. expansionary; increasing government purchases B. recessionary; increasing government purchases C. recessionary; increasing taxes D. expansionary; increasing transfer payments
Labor unions may increase worker productivity by facilitating smooth relations between labor and management.
Answer the following statement true (T) or false (F)