Cost-push inflation occurs when a nation's:
a. Aggregate supply rises, causing rising prices and rising unemployment.
b. Aggregate supply rises, causing rising prices and falling unemployment.
c. Aggregate demand rises, which leads to a decrease in aggregate supply curve and an increase in prices.
d. Aggregate supply falls, causing rising prices and rising unemployment.
.D
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Which of the following will cause an increase in the marginal product of capital (MPK)?
A) a decrease in the quantity of labor in use B) an increase in labor productivity C) a decrease in the quantity of capital in use D) all of the above E) none of the above
Any bank that uses deposits to make loans: a. operates on a 100 percent reserve system
b. operates on a fractional reserve system. c. does not operate on a reserve system. d. does not keep reserves in its vaults. e. charges an interest rate determined by the reserve ratio.
Government's role of providing national defense is considered:
A) enforcing a legal system. B) providing certain goods and services. C) redistributing income. D) expanding economic growth.
An export subsidy imposed in a large exporting country will cause the country's international terms of trade to improve.
Answer the following statement true (T) or false (F)