An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
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A critical assumption in the model of demand and supply is the independence of demand and supply curves. If the two are not independent, a shift in the supply curve can lead to a shift in the demand curve referred to as
a. supply-side economics. b. supplier-induced demand. c. supply shocks. d. ceteris paribus. e. the fallacy of supply.
One popular measure to describe the relationship between the dependent variableyand each explanatory variable is the:
A. ?standardized effect. B. ?interaction effect. C. ?average partial effect. D. ?partial effect.
Since most consumers spend very little on salt, a small increase in the price of salt will:
A. reduce quantity demanded by a large amount. B. not change quantity demanded. C. not reduce quantity demanded by very much. D. increase quantity demanded by a small amount.
Managerial reputation is an ________ incentive that helps to mitigate the ________ principal-agent problem.
A. internal; manager-consumer B. internal; manager-worker C. external; owner-manager D. external; owner-consumer