The macroeconomic conditions during the mid-1990s confounded many economists because of the simultaneous occurrence of
A. low unemployment and decreasing inflation rates.
B. low unemployment and increasing budget deficits.
C. low unemployment and increasing interest rates.
D. high unemployment and increasing inflation rates.
Answer: A
You might also like to view...
Suppose Cathy and Lewis work in a bakery making pies and cakes. Suppose it takes Cathy 1.5 hours to make a pie and 1 hour to make a cake, and suppose it takes Lewis 2 hours to make a pie and 1.5 hours to make a cake. Which of the following statements is correct?
A. Lewis should specialize in pies, and Cathy should specialize in cakes. B. Cathy should specialize in pies, and Lewis should specialize in cakes. C. Cathy should specialize in both pies and cakes. D. There are no gains from specialization and trade.
Countries with reliable phone service have difficulty not only communicating, but also reaping the benefits of other technology advances, such as the Internet
a. True b. False
Periodic fluctuations in real GDP are called
a. business cycles b. recessions c. peaks d. expansions e. troughs
Prices influence the distribution of income by making the distribution fairer
a. True b. False Indicate whether the statement is true or false