The reason that stagflation tends to follow an inflationary gap is that
a. output tends to fall even as prices continue to rise as part of the self-correcting mechanism.
b. government officials tend to overact in controlling inflation.
c. businesses try to increase profits by raising prices and increasing output.
d. workers accept pay cuts to maintain employment.
a
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Answer the following statements true (T) or false (F)
1. A major advantage of a partnership is the legal separation of personal and partnership assets. 2. In a corporate form of business enterprise, both profits and dividends are subject to income tax. 3. In determining what and how much to produce, the market economy works in a democratic manner based on dollar votes. 4. Government intervention in market economies was and is necessary to remedy the inequities that evolved from economic liberalism.
Given the following information, compute the unemployment rate: 6 million unemployed, 124 million employed.
What will be an ideal response?
When a government allows raw materials and other intermediate products to enter a country duty free, this generally results in a(an)
A) effective tariff rate less than the nominal tariff rate. B) nominal tariff rate less than the effective tariff rate. C) rise in both nominal and effective tariff rates. D) fall in both nominal and effective tariff rates. E) rise in only the effective tariff rate.
Refer to the following figure showing demand and marginal revenue for a monopoly.
At any price above $________ demand is elastic.
A. $5 B. $15 C. zero D. $20 E. $10