One reason stagflation is difficult to recover from is because:
A. wages are sticky downward.
B. input prices increase with output prices.
C. less output requires less inputs to be hired.
D. prices tend to adjust more quickly downward than upward.
A. wages are sticky downward.
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Which of the following is an example of foreign direct investment in China?
A) Chinese Shenzen Airlines company buys a small U.S. midwest airline company, Air Chicago. B) The bank of China purchases U.S. Treasury bonds. C) A U.S. foreign exchange speculator buys $200,000 worth of the Chinese currency the yuan. D) The U.S. company Walmart buys a warehouse in Shanghai. E) U.S. auto entrepreneur Elon Musk buys stock in Alibaba Group Holding Limited of Hangzhou, China.
Suppose that the government reduces income taxes. Which of the following is the most likely result?
a. An increase in human capital investment b. A decrease in consumption c. An increase in government spending d. A decrease in government spending e. A decrease in human capital investment
Graph of the relationship between the prices in the demand schedule and the quantity demanded at those prices
What will be an ideal response?
Suppose that a consumer purchases just two goods, X and Y. The slope of the budget line would indicate the:
A. Opportunity cost of good Y in terms of good X given up for each unit of Y B. Opportunity cost of good X in terms of good Y given up for each unit of Y C. Maximum quantity of good Y that the consumer could buy with a given budget D. Maximum quantity of good X that the consumer could buy with a given budget