A recessionary gap results in an increase in _____
a. unemployment
b. product prices
c. the planned level of inventories
d. input prices
a
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Return to the case of Jan, the hyperbolic discounter from the previous question. What values of B and C will lead her to be consistent with a plan not to undertake the action?
a. C < B < 2C. b. B < C. c. B > 2C. d. B < C < 2B.
Monetarists argue that government actions, particularly monetary policy, worsens the negative aspects of the business cycle
a. True b. False Indicate whether the statement is true or false
If the marginal tax rate is less than the average tax rate, the tax would be
A. progressive. B. regressive. C. uniform. D. proportional.
Suppose the annual growth rate of real GDP for the nation of Svengali is 5% and the growth rate of velocity is 0%. If the money supply growth rate decreases from 4% to 2%, what is the new rate of inflation in Svengali?
A) -3%. B) -1%. C) 3%. D) 7%.