What is demand-pull inflation?
What will be an ideal response?
An inflation that starts from an initial increase in aggregate demand is a demand-pull inflation.
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Suppose a new technology is developed that increases the productivity of labor. You would expect
A. the wage rate to fall, since employers will want less labor. B. the demand for labor to fall. C. the demand for labor to rise. D. an increase in unemployment as firms replace labor with technology.
An increase in the wage will cause the output supply curve in the one-input model to shift in unless labor is an inferior input.
Answer the following statement true (T) or false (F)
According to Elinor Ostrom's view of The Tragedy of the Commons:
a. The only way to prevent the collapse of the commons is government intervention. b. The only way to prevent the collapse of the commons is to privatize the commons so that it is owned by a single individual. c. Individuals will create institutions to prevent the collapse of the commons. d. Individuals will use the commons beyond the socially efficient point.
The equation of exchange states that the money value of GDP must be equal to the product of the money stock times its velocity
a. True b. False Indicate whether the statement is true or false