What will occur in the short run if there is cost-push inflation and the government adopts a hands-off approach to it?
A. An increase in real output
B. An inflationary spiral
C. Low unemployment and a loss of real output
D. High unemployment and a loss of real output
D. High unemployment and a loss of real output
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Many rapidly developing countries in East Asia have pursued government policies, which encourage savings. According to the neoclassical growth model, if these policies stimulate savings but do not encourage technology growth, then these policies
a. will have no effect on the level of output. b. will increase output growth permanently. c. will increase output growth in the short-run, but not in the long-run. d. will have no effect on the growth of output in the short-run or the long-run. e. none of the above.
The balance of payments records transactions between:
(a) Households and firms in a particular country. (b) Residents of one country and the rest of the country. (c) Residents of one country and the rest of the world. (d) Between residents of all EU countries only.
In the long run, monopolistically competitive firms:
A. have excess capacity and produce at the minimum of average total cost. B. produce at the minimum of average total cost. C. have excess capacity. D. charge prices equal to marginal cost.
Tax preferences create more _____ than a broad-based income tax because they change the relative prices to the taxpayer of earning different types of income
a. welfare loss b. benefits c. taxable income d. tax avoidance