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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If input prices adjusted just as quickly as output prices, the profit effect leading to an increase in RGDP supplied would disappear
a. True b. False Indicate whether the statement is true or false
An increase in demand for a good will lead to a larger increase in price if the supply is relatively elastic.
Answer the following statement true (T) or false (F)
A study of the impact of various government policies on economic growth would be considered:
A. marginal economics. B. microeconomics. C. government economics. D. macroeconomics.
Suppose that, at the market clearing price of natural gas, the price elasticity of demand is -1.2 and the price elasticity of supply is 0.6. What will result from a price ceiling that is 10 percent below the market clearing price?
A More information is needed. B A shortage equal to 1.8 percent of the market clearing quantity C A shortage equal to 0.6 percent of the market clearing quantity D A shortage equal to 18 percent of the market clearing quantity E A shortage equal to 6 percent of the market clearing quantity