A binding situation occurred during the recession of
A. 1974-1975.
B. 1980-1982.
C. 1990-1991.
D. 2008-2009.
Answer: D
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Special savings accounts that individuals would pay into and then use to pay for medical expenses (or use to purchase a catastrophic health insurance policy) are called
a. Medicare accounts. b. comprehensive insurance plans. c. medical savings accounts. d. Health Maintenance Organizations (HMOs).
Barb's aunt gave her $100 for her birthday with the condition that Barb buy herself something. In deciding how to spend the money, Barb narrows her options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100 . Finally she decides on Option B. The opportunity cost of this decision is
a. the value to Barb of the option she would have chosen had Option B not been available. b. the value to Barb of Options A, C and D combined. c. the average of the values to Barb of Options A, C, and D. d. $100.
The sticky-wage theory of the short-run aggregate supply curve says that when the price level rises more than expected,
a. production is more profitable and employment rises. b. production is more profitable and employment falls. c. production is less profitable and employment rises. d. production is less profitable and employment falls.
A surplus of a product will arise when price is:
A. above equilibrium, with the result that quantity demanded exceeds quantity supplied. B. above equilibrium, with the result that quantity supplied exceeds quantity demanded. C. below equilibrium, with the result that quantity demanded exceeds quantity supplied. D. below equilibrium, with the result that quantity supplied exceeds quantity demanded.