How are aggregate supply and stagflation related?
a. Stagflation usually causes an adverse shift in aggregate supply.
b. An adverse supply shift usually causes stagflation.
c. Stagflation only follows inflation, with no relation to aggregate supply.
d. There is no relationship between the two.
b
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Which policy measure requires investment banks to make public their analysts' recommendations?
A) Sarbanes-Oxley Act of 2002 B) Global Legal Settlement of 2002 C) Gramm-Leach-Bliley Act of 1999 D) Riegle-Neal Act of 1994
Pork from pigs can be used to produce bacon or sausage, but not both. If the price of bacon rises for some reason, then, everything else equal: a. the price of sausage will rise
b. the price of sausage will fall. c. the resources used to raise pigs will become less expensive. d. the demand for bacon will decrease.
Other things the same, if the U.S. price level rises, then
a. the supply of dollars in the market for foreign-currency exchange increases, so the exchange rate rises. b. the supply of dollars in the market for foreign-currency exchange increases, so the exchange rate falls. c. the supply of dollars in the market for foreign-currency exchange decreases, so the exchange rate rises. d. the supply of dollars in the market for foreign-currency exchange decreases, so the exchange rate falls.
Suppose Suzanne allocates her spending on apples and bananas according to the rational spending rule. If the price of apples is less than the price of bananas, then at Suzanne's optimal consumption bundle, her marginal utility from apples will be:
A. greater than her marginal utility from bananas. B. equal to zero. C. less than her marginal utility from bananas. D. equal to her marginal utility from bananas.