Monetizing the debt has what effect on the economy?
a. slow increase in AS with steady inflation
b. rapid increase in AD with an increase in inflation
c. rapid increase in AS with a drop in inflation
d. decrease in AD with an increase in inflation
b
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The above figure shows a housing market with a rent ceiling equal to $1,000. In this figure, what area is equal to the resources lost due to search?
A) area A B) area B C) area C D) area D E) area E
If the official unemployment rate increases in March from its February level because of sluggish sales in the auto industry, we can conclude that ____ unemployment is responsible for the increase
a. seasonal b. cyclical c. structural d. frictional e. any one of the causes of
Give two examples of activities, one legal and one illegal, that would be part of the underground economy. Explain why each example is considered an underground activity. Avoid giving examples from the text.
What will be an ideal response?
Refer to the diagram below of the market for corn. There will be a surplus of 8 thousand bushels at the price of:
A. $4/bushel
B. $3/bushel
C. $2/bushel
D. $5/bushel