The severe oil shortages of the 1970s in the US created:
A. cost push inflation.
B. demand pull inflation.
C. a recession.
D. an increase in the velocity of money.
A. cost push inflation.
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Refer to the scenario above. If both nations decide to trade, which of the following statements is true?
A) Hawaii should export both tea and coffee. B) Hawaii should import both tea and coffee. C) Hawaii should export tea and South Carolina should export coffee. D) Hawaii should export coffee and South Carolina should export tea.
A disadvantage associated with an Earned Income Tax Credit (EITC) program to reduce poverty is that it
a. encourages illegitimate births because single women with children receive higher payments. b. rewards laziness because it provides payments to those with low incomes regardless of their work effort. c. does not help the poor who are unemployed. d. creates unemployment by increasing the wage paid to unskilled workers above the equilibrium wage.
All real-world Lorenz curves are below the diagonal line because income is always distributed unequally in the real world.
Answer the following statement true (T) or false (F)
If desired investment exceeds actual investment, then
A. Inventories are less than the desired level. B. Cyclical unemployment exists. C. Inventories are accumulating beyond desired levels. D. A recessionary GDP gap will emerge.