According to aggregate demand and supply analysis, the favorable supply shock of 1995-1999 had the effect of
A) increasing aggregate output, lowering unemployment, and raising inflation.
B) decreasing aggregate output, raising unemployment, and raising inflation.
C) increasing aggregate output, lowering unemployment, and lowering inflation.
D) decreasing aggregate output, raising unemployment, and lowering inflation.
C
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Economists recognize that because people have limited resources:
A. government intervention is necessary. B. our future is bleak. C. they have to make trade-offs. D. they will never be happy.
If real GDP helps to predict the path of a particular macroeconomic variable, it is said to be a
A) conventional variable. B) coincident variable. C) leading variable. D) lagging variable.
Which of the following is a necessary condition for a budget surplus in an economy? a. Public saving must be positive
b. Net taxes must be positive. c. National saving should be positive. d. Household saving must be positive.
One problem associated with the gold standard was that
A) nations gave up control of their money supply. B) there was an incentive for individuals to hold gold at all interest rates. C) there was no fluctuation in exchange rates. D) nations could not determine their current account balances.