An increase in energy prices is a likely cause of
A) Great Depression.
B) Korean War inflation.
C) the recession in 1973-1975.
D) the Great Moderation.
C
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Suppose the economy is at point B. If a recession in another country decreases exports, to what point might economy move in the short run?
A) It stays at point B. B) It shifts to a point such as A. C) It shifts to a point such as C. D) None of the above answers are correct because it is the SAS curve that shifts, not the AD curve.
The common factors that give rise to all principal-agent problems include the
a. unobservability of some manager-agent action b. presence of random disturbances in team production c. the greater number of agents relative to the number of principals d. a and b only e. none of the above
Automatic stabilizers do not include
a. taxes b. interest rates c. transfer payments d. forward-looking behavior e. enhancing the multiplier effect