What are the economic implications of an inverted yield curve?
What will be an ideal response?
An inverted yield curve normally precedes a recession. An inverted yield curve reflects market expectations of an expected decline in future short-term interest rates, which typically occur during recessions.
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The production possibilities curve can shift inward when
A) production increases. B) employment increases. C) the stock of productive capital rises. D) a country experiences a natural disaster.
The classical dichotomy says that two groups of variables are affected by different forces. What are these two groups of variables?
High marginal tax rates will
What will be an ideal response?
The consumer price index measures the cost of:
A. a fixed basket of goods and services. B. all goods and services purchased by consumers. C. goods and services required to live above the poverty level. D. a changing basket of goods and services.