Demand-side inflation occurs when
A) long-run aggregate demand rises faster than short-run aggregate supply.
B) aggregate demand falls more rapidly than aggregate supply.
C) increases in aggregate supply outstrip increases in aggregate demand.
D) increases in aggregate demand are not matched by increases in aggregate supply.
D
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A government program that invested in financial institutions and automakers to help stabilize markets during the great recession of 2008 was the _____
a. Troubled Asset Relief Program b. Social Security System c. Supplemental Security Income Program d. Public Housing Assistance Program e. Deposit Insurance Program
Which of the following is not correct?
a. Antitrust laws may prevent mergers that would actually raise social welfare. b. Public ownership is the most common public policy toward monopolies in the United States. c. Regulation is a common strategy for a natural monopoly. d. Sometimes the best public policy toward a monopoly may be to do nothing.
Some people argue that there are two advantages to holding mutual funds. The first is that mutual funds provide an inexpensive way to hold a diversified portfolio. The second is that because of their expertise mutual fund managers should be able to consistently beat the market. Which of the following does the evidence show?
a. Diversification does reduce risk and mutual funds typically outperform the market. b. Diversification does reduce risk, but mutual funds do not typically outperform the market. c. Diversification does not reduce risk but mutual funds typically outperform the market. d. Diversification does not reduce risk and mutual funds do not typically outperform the market.
"A reduction in gasoline prices caused the demand for gasoline to increase. The lower gas prices also led to an increase in demand for large cars, causing their prices to rise." These statements
What will be an ideal response?