If the fluctuations in the economy’s real growth rate from year to year are caused primarily by variations in the rate at which aggregate demand increases, then data would show the
A. worst recession occurs when output expands most rapidly.
B. slowest inflation occurs when output expands most rapidly.
C. slowest economic growth occurs when output grows most rapidly.
D. most rapid inflation occurs when output expands most rapidly.
Answer: D
You might also like to view...
Blanca has her choice of either a certain income of $20,000 or a gamble with a 0.5 probability of $10,000 and a 0.5 probability of $30,000. The expected value of the gamble:
A) is less than $20,000. B) is $20,000. C) is greater than $20,000. D) cannot be determined with the information provided.
The money supply is
a. positively related to the interest rate b. negatively related to the interest rate c. positively related to income d. negatively related to income e. set by the Fed and therefore independent of the interest rate and income
When a government records a budget surplus, the national savings and investment identity is written as _____.
a. S = I + (G - T) + (X - M) b. S + (M - X) + (T - G) = I c. S - (G - T) = I - (X - M) d. S + (T - G) = 1 + (X - M)
According to "Oil Spikes On OPEC Pact," OPEC wants to behave like a monopoly, choosing a rate of industry output that maximizes total industry profit. The challenges for all cartels, OPEC in particular, include all of the following except
A. Replicating monopoly outcomes. B. Coordination. C. Allocating market share. D. Preventing some members from decreasing production.