One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired.
B. prices tend to adjust more quickly downward than upward.
C. wages are sticky downward.
D. input prices increase with output prices.
Answer: C
You might also like to view...
The tax imposed on gasoline
a. is an example of a product charge b. has no effect on consumption c. is used exclusively in the United States d. is set at a relatively high rate in the United States
If Bobby decides that his marginal utility per dollar spent on vanilla ice cream exceeds his marginal utility per dollar spent on chocolate ice cream, he should then
A) buy more chocolate ice cream and less vanilla ice cream. B) buy more vanilla ice cream and less chocolate ice cream. C) buy all the vanilla ice cream he can. D) never buy chocolate ice cream.
The U.S. dollar is one of the leading reserve currency in the world. This means that
A) dollars are often used to settle international debts and to state other currency exchange values. B) dollars are the most common currency for savings internationally. C) dollars are held to cover shortfalls in government budgets. D) dollars are accepted in just about every country in the world.
Refer to the above graph of a representative firm in monopolistic competition. What does line 4 represent?
A. Average total cost B. Marginal revenue C. Demand D. Marginal cost