Inflation caused primarily by an increase in aggregate demand is called stagflation
Indicate whether the statement is true or false
F
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Negative relationships are also referred to as inverse relationships.
Answer the following statement true (T) or false (F)
Recall the Application about how the collapse of the housing boom and the worldwide recession of 2007 led to problems for some countries in the Euro-zone to answer the following question(s). When the euro was launched in 1999, the vision of its founders was to use the monetary union to further unify Europe economically and politically. They envisioned a large economic market, comparable to the United States with integrated goods and financial markets. They believed that by moving to a single currency with agreements on a number of fiscal rules that they could achieve economic stability and growth.Recall the Application. The European nations that adopted the euro as a common currency no longer have their own central banks and are therefore no longer able to conduct their own independent:
A. fiscal policy. B. monetary policy. C. international investment. D. trade policy.
Which of the following will LEAST likely generate positive external effects to society?
A. education B. requiring drivers to undergo a test for alcohol consumption C. a comic book D. health care
A firm is currently producing in the elastic portion of its demand curve. What course of action do you recommend for it assuming it wants to raise revenue?
A. Continue selling at the same price, but increase the amount it produces. B. Increase price, because if it increases price and demand is elastic, total revenue will increase. C. Continue producing at the current output level, because it maximizes its total revenue by producing in the elastic portion of its demand curve. D. Reduce price, because if it reduces price and demand is elastic, total revenue will increase.