All of the following are consequences of an economy operating above its potential level except:
A. high rates of inflation.
B. stable prices.
C. high interest rates.
D. low unemployment.
Answer: B
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The formula for the computation of labor productivity is
A) nominal GDP/number of workers. B) real GDP/number of workers. C) nominal GDP/population. D) real GDP/population.
How is the quantity theory of money different from the quantity equation and why must the quantity equation always be true?
What will be an ideal response?
From a monetarist perspective, an expansionary fiscal policy's effect on aggregate demand would be offset by:
A. The buying of government securities by the Treasury B. The selling of government securities by the Treasury C. A cut in the Federal funds rate D. A cut in the discount rate
For a person earning $75,000, the average tax rate is:
A. 10%
B. 15%
C. 19%
D. 17%