Stagflation is caused by
a. a negative supply shock.
b. a positive supply shock.
c. a negative demand shock.
d. a positive demand shock.
e. none of the above.
A
You might also like to view...
Giving people income through unemployment insurance:
A. reduces seasonal employment because people find good matches, and change jobs less often. B. allows people to prolong their unemployment until they find a better match. C. creates one effect positive on unemployment. D. All of these are true.
Which is the distinguishing feature of the standard cobweb model?
A. Real wages steadily increase. B. Capital is not fixed in the short run. C. Payroll taxes create a tax wedge, which in turn increases overall employment levels. D. The firm is a perfectly discriminating monopsonist. E. Wages and employment levels adjust slowly over time.
When the economy is in the Keynesian range, an increase in aggregate demand will
A. increase the price level and have no effect on real national output. B. increase the real national output and have no effect on the price level. C. increase both real output and the price level. D. increase the price level and decrease the real national output.
The population and GDP of the European Union is ___________ that of the United States.
A. much less than B. comparable to C. much greater than