During periods of hyperinflation, which of the following is the most likely response of consumers?
a. Save as much as possible.
b. Spend money as fast as possible.
c. Invest as much as possible.
d. Lend money.
b
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When one firm uses the same strategy as the other firm used in the previous time period, this is known as a:
A. tit-for-tat strategy. B. grim-trigger strategy. C. dominant strategy. D. predatory strategy.
If cyclical unemployment is eliminated in the economy, then
A) the economy is considered to be at full employment. B) the unemployment rate is below the natural rate of unemployment. C) the unemployment rate is above the natural rate of unemployment. D) the economy is at less than full employment.
The government office that declares official periods of recession and depression is the:
A. National Bureau of Economic Research. B. Bureau of Labor Statistics. C. Congressional Budget Office. D. Federal Reserve Board.
Those who favor active policy making argue that all of the following exist EXCEPT
A) perfectly flexible wages and prices.
B) inflation and unemployment are stable in the short run and predictable in the long run.
C) pure competition is not typical.
D) aggregate demand shocks can influence real GDP and unemployment.