If asset prices rise:
A. productive capacity increases.
B. real wealth increases.
C. it is unclear whether wealth increases or inflation has occurred.
D. inflation increases.
Answer: C
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When the economy switches production toward services and away from manufacturing and workers in the manufacturing industry are permanently laid off
A) frictional unemployment decreases. B) structural unemployment increases. C) cyclical unemployment increases. D) frictional and cyclical unemployment increase.
According to the textbook application, the largest oil tanker spill in history
a. occurred when two tankers collided in 1979 off the coast of Trinidad and Tobago b. involved the Exxon Valdezin 1989 c. was associated with the Hebei Spirit in 2007 d. occurred as the result of an explosion of a deepwater oil rig
Money market mutual funds are included in
a. M1 but not M2. b. M1 and M2. c. M2 but not M1. d. neither M1 nor M2.
Explain the events that triggered the Debt Crisis and the Lost Decade
What will be an ideal response?