In the above figure, the distance between points T and U represents
A) an expansion.
B) a trough.
C) a peak.
D) a recession.
A
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Economic studies have shown that countries that have high inflation rates have lower rates of economic growth than do countries with low inflation rates. Explain what underlies this relationship between inflation and economic growth
What will be an ideal response?
Health and safety regulations in the labor market:
A. should be evaluated by comparing their costs to their benefits. B. can lead to an increase in frictional unemployment. C. are necessarily inefficient if they impose additional costs on employers. D. are always efficient because they improve working conditions.
The difference between M1 and M2 is given by which of the following?
A. M1 includes currency, coins, gold and silver, whereas M2 does not contain gold and silver. B. M1 is made up of currency, traveler's checks, and money in checkable accounts, whereas M2 contains M1 plus savings deposits and time deposits. C. M1 is limited to currency, whereas M2 contains M1 plus traveler's checks and money in checkable accounts. D. M1 includes currency and traveler's checks, whereas M2 contains M1 plus money in checking accounts.
Considering the euro/U.S. dollar exchange rate, as a U.S. dollar increases in value versus the euro (holding other factors constant):
A. American goods become relatively less expensive than foreign goods. B. foreign goods become relatively less expensive than American goods. C. we would expect the supply curve of dollars to slope downward. D. foreign assets become relatively more expensive than American assets.