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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The quantity of labor supplied increases as the real wage rises because
A) higher real wages mean that nominal wages have increased. B) the opportunity cost of working increases. C) the quantity of labor demanded increases. D) labor force participation decreases so that only serious workers are left in the labor force. E) the opportunity cost of leisure rises.
Using supply and demand analysis, which of the following is true?
a. The burden of a tax on production cannot be determined on the basis of who actually pays the tax. b. The burden of a tax on production is always split evenly between consumers and sellers. c. Consumers bear the entire burden of a per unit tax on production. d. Sellers bear the entire burden of a per unit tax on production.
Recessions are associated with lower incomes, rising unemployment, and falling profits
a. True b. False Indicate whether the statement is true or false
China is politically authoritarian and does not have well-established property rights, characteristics which were once thought to hinder growth.
Answer the following statement true (T) or false (F)