Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation.
B. low economic growth and high inflation.
C. high economic growth and low inflation.
D. low economic growth and low inflation.
Answer: B
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Mail-in ballots are designed to:
A. increase your ability to fulfill your civic duty. B. increase utility derived from voting. C. decrease the costs associated with voting. D. increase the accuracy voting process.
In a market economy, which of the following would most likely cause a prolonged grain surplus?
a. a decrease in the demand for grain b. an increase in the supply of grain c. imposition of a price floor above the equilibrium price of grain d. imposition of a price ceiling below the equilibrium price of grain
Rainbow trout has the shortest fishing season, which causes a rapid decrease in its population. To prevent the extinction of the trout, the government initially imposed a quota on the total amount of fish caught. The quota was imposed on the fishing of rainbow trout to prevent _____
a. the free rider problem b. the tragedy of the commons c. asymmetric information d. deadweight loss