In which of the following sets of circumstances can we confidently expect inflation?
A. Aggregate supply and aggregate demand both increase.
B. Aggregate supply and aggregate demand both decrease.
C. Aggregate supply decreases and aggregate demand increases.
D. Aggregate supply increases and aggregate demand decreases.
C. Aggregate supply decreases and aggregate demand increases.
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If a good has “snob appeal,” consumers may purchase less when the price falls.
Answer the following statement true (T) or false (F)
If deviations from trend in a macroeconomic variable are negatively correlated with deviations from trend in real GDP, that variable is said to be
A) useless in predicting future movements in real GDP. B) procyclical. C) countercyclical. D) acyclical.
One of the reasons why wages are "sticky downward" is that union workers often operate under a multiyear contract with a company and make wage reductions difficult or impossible during the contract period
a. True b. False Indicate whether the statement is true or false
Many economists oppose a constitutional amendment that would require a balanced budget for the federal government because it would probably make the business cycle more volatile
a. True b. False Indicate whether the statement is true or false