An economic boom that creates an inflationary gap is usually followed later by
A. falling prices.
B. a period of stagflation.
C. an increase of potential GDP.
D. an increase in aggregate supply.
Answer: B
You might also like to view...
What is the significance of the multiplier? What causes the multiplier to be larger or smaller?
What will be an ideal response?
The consumer price index (CPI)
A) compares the cost of the typical basket of goods consumed in period 1 to the cost of a basket of goods typically consumed in period 2. B) compares the cost in the current period to the cost in a reference base period of a basket of goods typically consumed in the base period. C) measures the increase in the prices of the goods included in GDP. D) is the ratio of the average price of a typical basket of goods to the cost of producing those goods.
Exhibit 12-6 Lorenz curves
Exhibit 12-6 shows the Lorenz Curve for three countries, I, II, and III. Which of the following statements is true?
A. Country I has the most unequal income distribution. B. Country II has the more equal income distribution than Country I. C. Country I has the most equal income distribution. D. Country III has the most equal income distribution.
Which of the following is an example of cyclical unemployment?
A. A worker stays at home to care for children. B. A student goes to school instead of working. C. An autoworker is laid off when auto sales fall due to a recession. D. A fast-food worker quits that job to find a better-paying job.