Historical note concerning U.S. price levels: During the 1970s, with the onslaught of OPEC oil price increases
a. inflation occurred and it was primarily cost-push
b. inflation was approximately zero because the Vietnam war ended and the demand for military goods fell dramatically
c. deflation was persistent
d. inflation occurred and it was primarily demand-pull
e. stagflation, the difference between inflation and deflation, was approximately zero
A
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"The second glass of Evian water was very good. May I have another?" Which of the following is necessarily true regarding this statement?
a. The marginal utility of the second glass is negative. b. The marginal utility of the second glass is less than the marginal utility of the first glass. c. The marginal utility of the second glass is positive. d. The water is free. e. The marginal utility of the third glass is negative.
When the yield curve is downward sloping:
A. people are expecting an economic slowdown. B. people are expecting higher inflation in the future. C. short-term yields are lower than long term yields. D. people could be expecting a tightening in monetary policy.
Assume the economy is initially in equilibrium with real GDP equal to potential GDP
Other things equal, if the economy enters a recession and there are no automatic stabilizers, the IS curve would shift to the ________, and the shift would be equal to ________. A) right; decline in investment spending B) left; decline in investment spending C) right; decline in investment spending times the multiplier D) left; decline in investment spending times the multiplier
COLA stands for:
A. cost-of-living adjustment. B. cost-of-living aggregate. C. capital operations leasing adjustment. D. capital operations leasing agreement.