A wage-price spiral occurs when
A. businesses boost production to try to stay ahead of higher-than-expected inflation.
B. businesses boost prices and wages to try to stay ahead of higher-than-expected inflation.
C. businesses reduce production to try to stay ahead of higher-than-expected inflation.
D. businesses reduce prices and wages to try to stay ahead of higher-than-expected deflation.
Answer: B
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If the national debt is strictly an internal debt, then
a. the amount of the debt places a burden on the generation that repays the debt b. the amount of taxes used to pay the interest on the debt equals the interest payments to the bond holders, and there is no national debt burden c. the amount of taxes used to pay the interest on the debt equals the interest payments to the bond holders creating a national interest-created debt burden d. the amount of the debt places a burden on the generation when the debt is incurred because it reduces the amount of consumption e. the amount of taxes used to pay the debt is paid by future generations, which shifts the burden of the debt from the present to the future generation
The minimum efficient scale is the output at which the long-run average cost curve becomes horizontal.
Answer the following statement true (T) or false (F)
As the world economy becomes more integrated through globalization
A. the Fed will find it easier to conduct monetary policy. B. the Fed will rely less on open market operations and more on changing the required reserve ratio when conducting monetary policy. C. the Fed will have a more difficult time reaching its money supply growth rate targets. D. U.S. interest rates will determine world interest rates.
For a perfectly competitive firm, the value of the marginal product of labor falls as more workers are hired because of the diminishing
A) output price. B) marginal physical product of labor. C) price of labor. D) marginal cost of production.