To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change.
B. increase.
C. decrease.
D. either increase or decrease depending on the relative shifts of AD and AS.
Answer: C
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What unethical methods might business communicators be tempted to use to make their case stronger?
a. Ignoring "What if?" questions b. Fudging the facts c. Omitting crucial information d. Exaggerating the point e. Gaining attention with a compliment
The fundamental objective of monetary policy is to assist the economy in achieving a ________.
A. balanced budget consistent with full-employment B. money supply, which is based on the gold standard C. rapid pace of economic growth D. full-employment, noninflationary level of total output
Overuse of a common resource may be avoided by all of the following methods of government intervention except
A) restricting access to the resource. B) restricting the intensity of the use of the resource. C) issuing tradeable permits for the use of the common resource. D) government taking over ownership of all common resources.
The unemployment rate equals [(the number of people unemployed)/(the population)] × 100
Indicate whether the statement is true or false