If business fluctuations are from demand-side forces,
a. monetary and fiscal policy will move inversely.
b. interest rates and budget deficits will move inversely.
c. unemployment and inflation will move inversely.
d. unemployment and budget deficits will move inversely.
c
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Since 1950, the balance of trade for United States has
A) gone from a surplus to a deficit. B) gone from a deficit to a surplus. C) remained constant. D) gone from a small deficit to a larger deficit.
A profit-maximizing firm will hire additional units of labor until
A) the additional cost of hiring the last worker equals the additional revenue generated by that worker. B) the additional cost of hiring the last worker equals the marginal factor cost of the worker. C) the extra revenue from hiring the last worker equals the marginal physical product of labor. D) the extra cost from hiring the last worker equals the cost of the product.
Changes in reserve requirements are made within legal limits by
a. the Federal Open Market Committee. b. Federal Reserve Banks. c. member banks of the Fed. d. the Board of Governors.