A demand-pull inflation spiral results when
What will be an ideal response?
aggregate demand increases and the economy corrects the resulting inflationary gap, but aggregate
demand continues to increase because the Federal Reserve continues to increase the quantity of money
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The layoff of workers in virtually all industries during the 1982 recession is an example of the classification of workers as
A) voluntarily unemployed. B) structurally unemployed. C) cyclically unemployed. D) frictionally unemployed.
A monopoly sells 10 units of output at $10. If the MR of the 11th unit is $4.50, then the price of the 11th unit is
A) also $10. B) $9.50. C) greater than $10. D) $7.25.
The incidence of a tax refers to
a. who receives the benefits from the revenue generated by the tax b. the changes in the marginal tax rate as income increases c. whether the tax is regressive, proportional, or progressive d. who bears the burden of the tax e. whether the tax is based on the ability-to-pay principle
The process of deregulating the airlines was initiated in the late 1970s by
a. Ronald Reagan b. George Bush c. Jimmy Carter d. Paul Volcker e. Lyndon Johnson