When there is a recession (a fall in output) and prices are increasing, and this situation is caused by adverse supply shocks, the term economists use to describe it is:
A. aggregate shifts.
B. stagnation.
C. inflation.
D. stagflation.
Answer: D
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Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
One way of alleviating opportunism is:
A. contracts in complex contracting environments. B. spot exchange. C. dedicated assets. D. vertical integration.
Refer to Figure 4.1. Theodore's available strategies include
A) top and bottom. B) up and down. C) left and right. D) all of the above
Cost-benefit analysis of international trade
A) is basically useless. B) is empirically intractable. C) focuses attention primarily on conflicts of interest within countries. D) focuses attention on conflicts of interest between countries. E) never leads to government intervention in international trade.