The likely result of an economy operating at full employment is:
a. cost-push inflation.
b. demand-pull inflation.
c. a lower rate of growth.
d. hyperinflation.
b
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How is it possible for consumption expenditure to be positive even when disposable income is zero?
What will be an ideal response?
One reason more sport utility vehicles (SUVs) are driven in the United States than in Europe is
A) different marginal rates of substitution. B) different marginal rates of transformation. C) the United States hasn't had a recession since 2000-2001. D) Either A or B
When a product transformation curve for a firm is bowed inward, there are ________ in production
A) economies of scope B) economies of scale C) diseconomies of scope D) diseconomies of scale
The Fed's sale of U.S. government securities in its open market operations constitutes
a. a restrictive policy because it lowers the amount of total reserves in the banking system. b. a restrictive policy because it raise the amount of required reserves in the banking system. c. an expansionary policy because it raises the amount of total and excess reserves in the banking system. d. an expansionary policy because it raises the amount of excess reserves and lowers the amount of required reserves in the banking system. e. an expansionary policy because it raises the amount of required reserves in the banking system.