If there is persistent inflation
A) long-run aggregate supply is growing at a faster rate than aggregate demand.
B) long-run aggregate supply is growing at a slower rate than aggregate demand.
C) there is an excess of total planned expenditures.
D) long-run aggregate supply is constant.
B
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Explain the output effectof a factor price increase
What will be an ideal response?
The price of bonds and the interest rate are
A) inversely related. B) positively related. C) unrelated. D) related, but we are not sure how.
Under the current structure of Medicare, the movement of the baby boom generation into the retirement phase of life will
a. increase the demand for medical services and the share of those services financed by third parties. b. push both healthcare prices and expenditures upward. c. cause Medicare expenditures to increase and necessitate the need for higher taxes to finance the program. d. do all of the above.
Gross domestic product is calculated by adding together
A. the number of goods and services produced in the economy. B. money value of final goods and services. C. number of workers employed in national production. D. all commodities but not services produced in the economy.