During a recession we will most likely see which of the following?
a. Real GDP decrease, Inflation increase, unemployment increase
b. Real GDP decrease, inflation decrease, unemployment increase
c. Real GDP increase, inflation increase, unemployment decrease
d. Real GDP increase, inflation increase, unemployment increase
Ans: b. Real GDP decrease, inflation decrease, unemployment increase
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The Bush tax cuts
A. reduced tax rates for the upper brackets and increased tax rates for lower-income taxpayers. B. reduced tax rates for the upper brackets and held constant tax rates for lower-income taxpayers. C. reduced tax rates for the upper brackets and decreased tax rates for lower-income taxpayers. D. held constant tax rates for the upper brackets and decreased tax rates for lower-income taxpayers. E. Increased tax rates for the upper brackets and decreased tax rates for lower-income taxpayers.
A student might describe information about the costs of production as
a. dry and technical. b. boring. c. crucial to understanding firms and market structures. d. All of the above could be correct.
A decrease in supply will increase prices least when demand is
A. perfectly inelastic. B. unit elastic. C. elastic. D. inelastic (but not perfectly inelastic).
Explain the difference between the short run and the long run.
What will be an ideal response?