If the AD and AS curves intersect in the upward-sloping segment of the AS curve, and then OPEC raises oil prices by 300 percent, we should expect to see the price level
a. rise and real GDP to rise
b. rise and real GDP to fall
c. rise and the unemployment rate to fall
d. fall and real GDP to rise
e. fall and the unemployment rate to rise
B
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An example of a transfer payment is
A) a welfare payment. B) a paycheck for a member of the National Guard. C) a purchase of a new bridge in Alaska. D) a teacher's paycheck.
When government inefficiencies exist
A) a country tends to grow at a slower rate. B) a country tends to grow at a faster rate. C) economic growth is not influenced. D) dead capital is usually not a problem.
An impartial observer who listens to both sides in a labor-management dispute and makes suggestions as to how the two sides could compromise is called
a. a mediator b. an arbitrator c. a litigator d. a scab e. a judge
According to the Phillips curve model, when expectations of inflation increase, the same level of unemployment will be associated with a higher rate of inflation.
Answer the following statement true (T) or false (F)