At the start of cost-push inflation...
What will be an ideal response?
the price level rises and real GDP decreases
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Younger workers are:
A. Much more likely to migrate than older workers because younger workers have lower moving costs B. Much less likely to migrate than older workers because younger workers have more close friends at home C. Much more likely to migrate than older workers because younger workers have more human capital than older workers D. Much less likely to migrate than older workers because younger workers do not have as much experience
A monetary system is preferable over the barter system because it
A) is easier to track by the government. B) limits cash leakages. C) reduces transaction costs. D) is determined by the Congress.
The use of discretionary fiscal policy is hampered by
i. difficulty of estimating the level of potential GDP. ii. lack of accuracy of economic forecasts. iii. the small impact tax cuts and increases in government expenditure have on aggregate demand. A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
Refer to Figure 2-11. What is the opportunity cost of producing 1 pound of cashews in Pakistan?
A) 3/8 of a bolt of cotton B) 5/8 of a bolt of cotton C) 1 3/5 bolts of cotton D) 240 bolts of cotton