If the United States economy were operating on its production possibilities frontier, it would have the best chance of quickly and temporarily reaching point F if
A. we were at war.
B. we were in a depression.
C. we were in a period of inflation.
D. we invested more in plant and equipment.
A. we were at war.
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As wages rise, the substitution effect induces households to
A) choose leisure rather than supplying labor in the labor market. B) choose supplying labor in the labor market rather than engage in leisure. C) reduce the opportunity cost of leisure. D) reduce the economic rent from leisure.
Assuming that C = $6,200, I = $1,300, G = $1,100, Exports = $630, Imports = $750, and Depreciation = $600 (all in billions of dollars), GDP equals $7,880
Indicate whether the statement is true or false
In mid-2009, publicly held debt was approaching ______ and total debt was approaching ______
a. $1 trillion; $12 trillion. b. $3 trillion; $6 trillion. c. $12 trillion; $7 trillion. d. $7 trillion; $12 trillion. e. $12 trillion; $12 trillion.
According to the long-run Phillips curve, if the Fed increases the growth rate of the money supply, what happens to the inflation rate and the unemployment rate in the long run?