Which of the following is most likely to result in inflation?
A. Aggregate demand and aggregate supply grow at the same rate.
B. Neither aggregate demand nor aggregate supply grows at all.
C. Aggregate supply grows more rapidly than aggregate demand.
D. Aggregate demand grows more rapidly than aggregate supply.
Answer: D
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Indicate whether the statement is true or false
Which of the following formulas would correctly calculate a monopolist's profit?
a. profit = price – marginal cost b. profit = price – average total cost c. profit = (price – marginal cost) × quantity d. profit = (price – average total cost) × quantity
In a country with a working-age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. If 500,000 of those unemployed are cyclically unemployed, what is the natural unemployment rate?
A) 8.3 percent B) 5.6 percent C) 11.1 percent D) 9.4 percent E) none of the above
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