Which of the following would most likely cause an adverse long-run aggregate supply shock and stagflation?
a. A long-term oil embargo that reduces oil supply to industrialized countries
b. A tax cut that stimulates production incentives for industries
c. Technological innovation that substantially enhances the productivity of an economy's resources
d. Abundant harvests that increase the food supply
a
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Rebecca, a citizen of U.S., imported a watch from Switzerland. This transaction leads to a(n) ________
A) increase in the GNP of U.S. B) increase in the GDP of Switzerland C) decrease in the GDP of Switzerland D) increase in the GDP of U.S.
By discriminating between the consumers, the monopolist actually takes away a portion of the consumer surplus
a. True b. False Indicate whether the statement is true or false
Some economists claim that investment and economic growth are dependent upon income inequality
Indicate whether the statement is true or false
The benchmark interest rate that banks use as a reference point for a variety of consumer and business loans is the:
A. federal funds rate. B. prime interest rate. C. discount rate. D. Treasury bill rate.