An extremely deep and long period of negative economic growth is most accurately called:
a) Deflation.
b) Inflation.
c) A recession.
d) A depression.
Answer: d) A depression.
You might also like to view...
Refer to the graph shown depicting a monopolistically competitive firm. The marginal cost curve is represented by curve:
A. A. B. B. C. C. D. D.
Exhibit 21-3 Potatoes and wheat output (tons per day) CountryPotatoes Wheat United States4 2 Ireland3 1 In Exhibit 21-3, the United States has an absolute advantage in producing:
A. potatoes. B. wheat. C. both. D. neither.
In a market economy, ________ interact in markets to decide the answers to the fundamental economic questions
A) state and local governments B) large corporations C) households and firms D) the judicial and legislative branches of the federal government
Imagine that the state legislature raises the tax on gasoline by 10 cents/gallon. What most likely happens next?
A. Service station operators pass along the tax to you, adding the 10 cents to the price of a gallon of gas. B. Service station operators grumble, but pay the tax without passing the cost along to you. C. Service station operators pass along as much of the tax to you as they can, perhaps around 6 cents/gallon. D. The tax does not affect the outcome in the gasoline market.