Stagflation caused by a negative supply shock makes macroeconomic policy very difficult; trying to reduce the size of a recession caused by the shock leads to a higher price level

a. True
b. False
Indicate whether the statement is true or false


True

Economics

You might also like to view...

A method of valuing a life that estimates how much money it takes to get the typical person to bear an additional risk of death is called the

A) lost-income approach. B) compensating differential approach. C) daredevil approach. D) price-is-right approach.

Economics

The above figure shows a firm in monopolistic competition. At the profit maximizing level of output, excess capacity for the firm is equal to

A) 0 units per day. B) 4 units per day. C) 8 units per day. D) 16 units per day.

Economics

A decrease in the marginal income tax rate is a fiscal policy which will increase aggregate demand

Indicate whether the statement is true or false

Economics

Government funding for _______________ helps produce broadly available technology as well as scientific advances.

a. research and development b. individual copyrights c. political campaigns d. state and local governments

Economics