An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
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________ are the owners of a corporation
A) Bondholders B) The board of directors C) Stockholders D) Top management
Sticky wages occur because:
A. employers must wait until the current contract ends to cut someone's pay. B. unions often negotiate wages for several years in advance. C. wages can only be changed at the end of contracts, as opposed to final good prices which can change anytime. D. All of these are true.
An increase in the money supply may __________ total expenditures, leading to a __________ shift of the AD curve
A) increase; rightward B) increase; leftward C) decrease; rightward D) decrease; leftward
Answer the next question on the basis of the following information about the hypothetical economy of Asland. All figures are in millions.Unemployed7Total population145Employed95Discouraged workers3The labor force in Asland is
A. 105 million. B. 95 million. C. 102 million. D. 145 million.