During the late 1960s, U.S. defense spending increased as the United States fought in Vietnam. This increase in government expenditure on goods and services most likely created
A) an inflationary ga
A
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Which of the following will most likely occur during the recessionary phase of a business cycle?
a. Real GDP rises, and the unemployment rate falls. b. Real GDP declines, and the rate of inflation rises. c. The sales of most businesses decline, and the unemployment rate rises. d. Inflation rises, and employment/population ratio falls.
Which statement is true?
A. Frank Knight believed that capital is surplus value that has been stolen from the worker. B. Joseph Schumpeter believed that risk-bearing is no part of the entrepreneurial function. C. Karl Marx believed that profits were the capitalist's reward for innovation. D. None of the statements are true.
Suppose velocity is constant, but real GDP is not independent of the money supply. If this is the case, a 10 percent increase in the money supply will:
A. have an unpredictable effect on inflation. B. raise inflation by less than 10 percent. C. raise inflation by more than 10 percent. D. raise inflation by 10 percent.
Natural monopolies have all of the following characteristics except
a. relatively high fixed cost b. relatively low average variable cost c. low levels of production d. difficulty for new firms to enter e. only one firm can produce profitably