Describe cost-push inflation and its major source.
What will be an ideal response?
Cost-push or supply-side inflation is caused by the per-unit cost of production rising so that costs push up prices for firms to maintain profitability. A major source of this type of inflation comes from so-called supply shocks. The supply shocks refer to situations in resource markets such as the oil crises of 1973–1974 and 1979–1980 when imported oil prices rose dramatically and pushed up energy costs for production and transportation.
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Your roommate is having trouble grasping how monetary policy works. Which of the following explanations could you use to correctly describe the mechanism by which the Fed can affect the economy through monetary policy? Increasing the money supply
A) causes people to spend more because they know prices will rise in the future. B) lowers the interest rate, raises the value of the dollar, lowers the prices of exports, and raises net exports. C) lowers the interest rate, and firms increase investment spending. D) raises the interest rate and consumers decrease spending on durable goods.
Give at least three examples from economics where each of the following type of data can be used: cross-sectional data, time series data, and panel data
What will be an ideal response?
The first antitrust legislation was passed in the United States during the late 1970s in response to the massive OPEC oil-price shocks and the Penn-Central Railroad cartel. Prior to this time, government authorities were forced to use nuisance laws to restrict anti-competitive business activity
Indicate whether the statement is true or false
The empirical and theoretical results on occupational crowding in the United States suggest that
A. occupational crowding is substantial in the United States, but this should not be thought of as a source of discrimination. B. occupational crowding is substantial in the United States, and much of this should be thought of as a source of discrimination. C. there is minimal occupational crowding in the United States, and therefore it cannot be a source of discrimination. D. there is minimal occupational crowding in the United States, but this is still thought to be an important cause of racial discrimination but not gender discrimination. E. occupational crowding is substantial in the United States, but occupational crowding is unrelated to discrimination.