Stagflation occurs when the economy's ________ are both high.
A. inflation rate and growth rate
B. inflation rate and unemployment rate
C. unemployment rate and deflation rate
D. unemployment rate and growth rate
Answer: B
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In the United States, dumping is
a. encouraged because it lowers prices for consumers b. prohibited by the Trade Agreement Act of 1979 c. discouraged by domestic consumers who benefit from the lower price d. encouraged because it encourages competition e. encouraged because it promotes expenditure on R&D
Marginal decision-making is best demonstrated by: a. choosing to spend one more hour studying economics because the improvement in scores on the next quiz will be worth the sacrifice of time. b. deciding to never purchase a coat made of animal skin or fur
c. acquiring the information relevant to a choice before making that choice. d. measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake.
Which of the following statements best describes the demand for agricultural commodities?
A. It takes a small decline in price to induce a large increase in the amount of agricultural products demanded. B. The marginal utility of additional units of agricultural output diminishes very rapidly. C. Small increases in income cause demand to increase by a proportionately larger amount. D. When price declines, the resulting substitution effect is very large.
If P = MC and MC > ATC, then a perfectly competitive firm will earn ________ profits.
A. negative B. positive C. zero D. break-even