During periods of stagflation, what happens to output and prices in the economy?
Output falls and prices increase
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Which of the following relationships is likely to exhibit negative correlation?
A) The relationship between inflation in the U.S. and traffic congestion in China B) The relationship between amount saved with a bank and the interest earned C) The relationship between the amount of precipitation in a year and the number of umbrellas sold D) The relationship between level of professional training and unemployment
Nominal GDP will increase
A) only if the quantity of final goods and services produced rises. B) if either the price level or the quantity of goods and services produced rises. C) only if the price level rises. D) only if the price level falls.
Which of the following is an implicit cost of going to college?
a. tuition and fees b. books, computer equipment c. income lost from not being able to work full time d. future income e. room and board
Assume that corn and soybeans are alternatives that could be grown by most farmers. An increase in the price of corn will
a. increase the supply of corn. b. increase the supply of soybeans. c. decrease the supply of soybeans. d. decrease the supply of corn. e. have no effect on the supplies of corn and soybeans.