A sudden increase in the price of oil causes a ________ inflation and ________ output.
A. cost-push; higher
B. demand-pull; lower
C. cost-push; lower
D. demand-pull; higher
Answer: C
You might also like to view...
A market dominated by a few large sellers who sell identical or differentiated products is called
A) perfect competition. B) monopolistic competition. C) monopoly. D) oligopoly.
Which of the following is an example of moral hazard?
A) I hire you to work in my garden for a fixed fee, and you work hard all day. B) I hire you to work at an hourly rate and you work as slowly as possible. C) You apply for the job only because I pay a fixed wage per day, no matter how much or little you do. D) You agree to be paid by the weed to work in my garden, and then don't work hard.
The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($1,050); personal consumption expenditures ($4,800); imports ($370); exports ($240); gross private domestic investment ($1,130). Personal consumption expenditures are approximately what percentage of this economy?
A. 60 percent B. 65 percent C. 70 percent D. 75 percent
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher