Which of the following could increase unemployment and inflation simultaneously?
A) a decrease in the real wage
B) an increase in oil prices
C) expansionary monetary policy
D) contractionary monetary policy
B
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Traffic congestion is an example of
A) a shortage of roadway space. B) a surplus of automobiles. C) a surplus of drivers. D) a surplus of people.
Which of the following statements is TRUE in the short run?
A) Generally, labor is a fixed input. B) Generally, capital is a fixed input. C) Raw materials are generally considered to be fixed inputs. D) None of the above.
In the financial crisis that started in 2006, a significant indicator of the U.S. economic decline was:
A. a significant drop in interest rates. B. a sharp increase in unregulated Ponzi-type security sales. C. rising defaults by subprime mortgage borrowers. D. a large increase in loan default due to unemployment.
If a price ceiling of $8 were placed in the market in the graph shown:
A. some surplus is transferred from consumer to producer.
B. some surplus is transferred from producer to consumer.
C. all consumers are made better off.
D. all producers are made better off.
AACSB: Knowledge Application