An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
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A method of analyzing the strategic interaction that occurs between small numbers of people, firms, organizations, or countries is called
A) clinical observation. B) microdemographics. C) forensic economics. D) game theory.
Generally speaking, income inequality is
A) higher in Europe than in the United States. B) higher in the United States than in most of the developing world. C) extremely high and does not vary much between nations in the developing world. D) higher in the developing world than in the developed world.
A 14-day training and workshop initiative undertaken by a manufacturing firm improves the productivity of its workers and increases its monthly production. This results in a(n): a. upward movement along the demand for labor curve. b. rightward shift of the demand for labor curve
c. leftward shift of the demand for labor curve. d. downward movement along the demand for labor curve.
We would expect the cross-price elasticity of demand between coffee and
A. tea, and coffee and cream to both be negative. B. tea, and coffee and cream to both be positive. C. tea to be positive, but negative between coffee and cream. D. tea to be negative, but positive between coffee and cream.