If Tom purchases a comprehensive auto insurance policy because he knows he is a reckless driver, his behavior is an example of moral hazard.
Answer the following statement true (T) or false (F)
False
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Figure 33-1
?
Which of the following is true about the economy depicted in Figure 33-1?
A. Economy is experiencing supply-side inflation. B. Policymakers have chosen to fight inflation rather than unemployment. C. The increase in aggregate demand has increased prices but not real GDP. D. The slope of the aggregate supply curve embodies the trade-off between unemployment and inflation.
Which of the following is not a correct characterization of the U.S. business cycle?
A) Employment is procyclical. B) Consumption is procyclical. C) Real wages are procyclical. D) Prices are procyclical.
Why will it difficult for the Fed to use monetary policy to direct the economy back to full employment and price stability from the recession of 2008-2009?
What will be an ideal response?
Refer to the graph below. If the output level is Q1, then the sum of the consumer and producer surplus is:
A. bce
B. ac0
C. 0abe
D. 0eQ1