Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation.
B. low economic growth and high inflation.
C. high economic growth and low inflation.
D. low economic growth and low inflation.
Answer: B
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What alternative to restrictions on capital inflows do some economists recommend to minimize the possibility of increased lending booms and risk taking by domestic banks?
What will be an ideal response?
Based on the table below, the four-firm concentration ratio equals what percentage of annual sales?
A) 33 percent B) 40 percent C) 60 percent D) 100 percent
Interest rate parity can be summarized by which of the following equilibrium conditions?
a. The foreign interest rate must equal the domestic interest rate plus the expected inflation. b. The foreign interest rate must equal the domestic interest rate. c. The foreign interest rate must equal the expected change in the exchange rate. d. The domestic interest rate must equal the foreign interest rate plus the expected change in exchange rate. e. The domestic interest rate must equal the foreign interest rate minus any expected inflation.
Starting from an equilibrium position,
a. the imposition of a price floor below the equilibrium price will increase the quantity demanded. b. the imposition of a price floor below the equilibrium price will decrease the quantity exchanged. c. the imposition of a price floor above the equilibrium price will decrease the quantity demanded. d. the imposition of a price floor above the equilibrium price will increase the quantity exchanged.