With an increase in the real interest rate, consumption and real gross domestic product will most likely change in which of the following ways?
A) Increase/Increase
B) Increase/Decrease
C) Decrease/Increase
D) Decrease/Decrease
E) No change/Increase
Ans: D) Decrease/Decrease
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Explain why a monopolist has no supply curve
What will be an ideal response?
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.
Economic growth is measured by the percentage change in:
A. potential nominal GDP. B. structural unemployment. C. inflation D. potential real GDP (LRAS).
A government using fiscal policy in an attempt to stimulate the economy would do which of the following?
A) Raise taxes. B)raise government spending. C) Lower interest rates. D) Raise interest rates.