Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation.
B. low economic growth and high inflation.
C. high economic growth and low inflation.
D. low economic growth and low inflation.
Answer: B
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If the price elasticity of demand is 2, this means that a ________ increase in price causes a ________ decrease in quantity demanded.
A. 15%; 100% B. 15%; 10% C. 20%; 40% D. 30%; 20%
Suppose that there are five firms in a market, each controlling 20% of the market. The HHI would equal:
A. 10. B. 100. C. 1,000. D. 2,000.
An increase in an asset's expected return relative to that of an alternative asset, holding everything else constant, ________ the quantity demanded of the asset
A) increases B) decreases C) has no effect on D) erases
Suppose the federal government allows labor unions to act as the sole seller in labor markets, but the government collects an annual $10,000,000 "administrative fee" from each union in this situation
Assuming this fee is not so large that it forces the unions to disband, what is the impact of this fee on the equilibrium wage and employment level in the monopolized labor market? A) Wages and employment decline. B) Wages increase and employment declines. C) Employment increases and wages decline. D) No change in wages or employment levels.