The stagflation experienced in the U.S. during the late 1960s and the 1970s showed us that
A. the relationship between unemployment and inflation was not as clear-cut as presented on the Phillips curve.
B. it is possible to alleviate economic stagflation through the government discretionary fiscal policy.
C. the Phillips curve accurately represents the trade-off between unemployment and inflation.
D. both inflation and economic expansion could exist simultaneously.
Answer: A
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The rising minimum wage allegedly has reduced the quantity demanded of teenage labor. However, demographics slightly reduced the supply of teenage labor. The U.S. Department of Labor reported that teenage unemployment is an increasing problem. Which graph in Figure 4-10 is consistent with these facts?
A. 1 B. 2 C. 3 D. 4
An economy's potential level of output can be altered by changes in: a. the actual price level
b. the expected price level. c. aggregate demand. d. real GDP. e. its stock of capital.
Which of the following is not a limitation a person faces when shopping for clothes?
a. The amount of time available to shop b. The person's budget c. The various styles that are available d. The selection of stores e. The freedom to make rational choices
Invention cannot be successful financially if price is
a. greater than marginal cost because invention is based largely on social costs. b. greater than marginal cost because invention is based solely on external costs. c. equal to marginal cost because invention is based largely on variable costs. d. equal to marginal cost because invention is based largely on fixed costs.