Economic fluctuations are defined as
A. alternating periods of significant GDP growth and decline.
B. events only encountered in developing countries.
C. periods of stable economic growth.
D. alternating periods when the unemployment rate rises above and below zero.
Answer: A
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At the start of a cost-push inflation,
A) the price level rises and real GDP does not change. B) the price level remains constant and real GDP increases. C) the price level rises and real GDP decreases. D) the price level remains constant and real GDP decreases. E) the price level and real GDP both increase.
On a bank's balance sheet, the value of its assets must equal: a. net worth only
b. liabilities only. c. owner's equity. d. the value of its liabilities plus net worth. e. its revenues minus costs.
Which of the following would be a legitimate government activity in the U.S. economy?
A. Enforcing child labor laws. B. The enactment of antitrust laws to protect consumers. C. The regulation of water pollution. D. All of the choices are correct.
Refer to Scenario 3.2 below to answer the question(s) that follow.SCENARIO 3.2: Lettuce and spinach are substitutes. Lettuce and tomatoes are complements. Lettuce is a normal good. During the winter, about 20% of the lettuce crop was destroyed by flooding.Refer to Scenario 3.2. If at the same time that part of the lettuce crop was destroyed, consumer income also decreased, then, ceteris paribus, in the market for lettuce this would have caused
A. the equilibrium price to decrease. The equilibrium quantity could have increased, decreased, or remained the same. B. the equilibrium price to either increase, decrease, or remain the same and the equilibrium quantity to decrease. C. both the equilibrium price and quantity to decrease. D. the equilibrium price to increase and the equilibrium quantity to decrease.