If the government uses expansionary monetary or fiscal policies to counter the output-effects of cost-push inflation, then the economy is likely to experience:
A. A decline in nominal wages
B. An inflationary spiral
C. A recession
D. Disinflation
B. An inflationary spiral
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The term for a broad measure of the balance of trade that includes trade in goods and services as well as international flows of income and foreign aid is
a. current account balance. b. merchandise trade balance. c. unilateral transfer balance. d. goods account balance.
A ______ economy is an economy that allocates goods and services through the private decisions of consumers, input suppliers, and firms
a. traditional b. command c. mixed d. market
Economic cost is always less than accounting cost.
Answer the following statement true (T) or false (F)
The marginal cost curve always intersects the average total cost curve at the point at which the average total cost curve
A. is zero. B. is at its maximum. C. has a vertical slope. D. is at its minimum.