The U.S. economy has had persistent inflation in recent decades. A possible explanation for the inflation is that
A) there have been decreases in the growth rate while aggregate demand has remained unchanged.
B) growth in aggregate demand has been greater than growth in aggregate supply.
C) there have been decreases in aggregate demand while aggregate supply has remained unchanged.
D) there have been increases in the growth rate while aggregate demand has remained unchanged.
B
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A firm operating in a purely competitive labor market has the following marginal revenue product schedule.WorkersMRP1$24222320418516614712If the wage rate decreases from $17 to $13, by how much will the firm expand employment?
A. 5 workers B. 4 workers C. 3 workers D. 2 workers
The concept of inequality
A. has no economic meaning. B. applies to low income countries only. C. is an extension of relative poverty. D. is only a theoretical concept.
If real GDP increases, ceteris paribus, the demand for money decreases
Indicate whether the statement is true or false
One policy option explored during the Obama administration was to change U.S. drug laws to
A. prohibit re-importation. B. ban television advertising of prescription drugs. C. permit re-importation. D. restrict malpractice lawsuits.