Which of the following terms refers to an unusually severe, prolonged recession, typically with an unemployment rate that exceeds 10%?
A) Depression
B) Inflation
C) Deflation
D) Depreciation
Answer: A) Depression
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According to this Application, the prices which were tracked in the retail catalogs exemplified the macroeconomic concept of the short run, a period of time in which
A) prices change frequently because of changes in aggregate supply. B) prices don't change very much, implying that the aggregate supply curve is relatively flat. C) prices never change because the aggregate demand curve is vertical. D) price changes are significant because the aggregate supply curve is vertical.
Suppose that in October the price of a cup of cafe latte was $2.50 and 400 lattes were consumed. In November the price of a latte was $2.00 and 600 lattes were consumed. What might have caused this change?
A. The price of tea (a substitute for cafe lattes) fell. B. The price of tea (a substitute for cafe lattes) rose. C. The price of coffee beans (an input of production of cafe lattes) rose. D. The price of coffee beans (an input of production of cafe lattes) fell.
If the economy's resources are fully employed, pumping money into the economy will put ________ pressure on interest rates and will ________ output
A) upward; not change B) upward; decrease C) downward; decrease D) downward; not change
Which of the following is considered a microeconomic issue?
A. The unemployment rate in the US from 1980-2014. B. Apple releases a new version of the iPhone. C. France’s growth rate in the last year. D. All of these are examples of microeconomic issues.