Based on the graph showing the run-up of nominal home prices, if a person had wanted to buy a house, hold it for one year, and then sell it for a profit, which of the following years would have been the worst to make the purchase in?
a. 1922
b. 1966
c. 1992
d. 2006
d. 2006
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Anti-trust regulators are likely to prohibit two firms from merging if
a. the combined firm will undercut competitors with lower prices. b. the combined firm will have a large share of the market. c. there are many other firms in the industry. d. there are sizable synergies to the combination.
The trough of a business cycle occurs when ________ hits its lowest point.
A. the money supply B. aggregate economic activity C. the unemployment rate D. inflation
When actual output equals potential output, there is ________ output gap and the inflation rate will ________.
A. no; be equal to the expected rate of inflation B. an expansionary; exceed the expected rate of inflation C. an expansionary; be lower than the expected rate of inflation D. a recessionary; exceed the expected rate of inflation