In recent years the discussions of the causes of recessions have focused on monetary policy and higher oil prices as the likely causes. Discuss how we can get insight into the likely cause by focusing on macroeconomic variables.
What will be an ideal response?
If the recession was caused by monetary policy, the dynamic aggregate demand curve should shift to the left and inflation should decrease. On the other hand, if the recession was caused by a negative supply shock, the inflation rate should rise as the output decreases.
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Refer to Figure 13-4. Given the economy is at point A in year 1, what is the inflation rate between year 1 and year 2?
A) 0.9% B) 1.8% C) 2.7% D) 3.0%
An example of moral hazard is
a. people drive as carefully in icy conditions with antilock brakes as without b. people drive as safely with more airbags as without c. football players 'spear' with their heads when tackling more often with safer helmets d. people read the medicine warnings as carefully when self-medicating versus with a doctor's prescription
The long run is referred to as a planning horizon because:
a. the firm has committed to a fixed quantity of at least one resource and the other resources are variable. b. the manager has selected the size of the firm that appears to be the least profitable and does not have the option of selecting any other plant size. c. the firm has not committed to a fixed quantity of any resource and has all options available to it. d. the manager has selected a scale of production. e. the firm is operating along a specific average-cost curve.
The main goal of any healthcare system, sometimes called the Triple Aim, include all but one of the following.
a. Improve the overall quality of medical care services. b. Control medical care spending to make access more affordable. c. Expand access to medical care. d. Provide universal insurance coverage