In the mid-1970s, changes in oil prices greatly affected U.S. inflation. When oil prices rose, the U.S. would experience ________.
A. cost-push inflation and falling output
B. demand-pull inflation and falling output
C. cost-push inflation and rising output
D. demand-pull inflation and rising output
Answer: A
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Which of the following is considered by economists to be the most fundamentally scarce?
A. Money B. Ideas C. Needs D. Food E. Physical resources
The income generated by _____ will be included in the GDP of an economy
a. a professional working in small start-up firm outside the territory of the economy b. a person selling marijuana to college students c. a person selling electronic guides to tourists d. a farmer selling oranges to a fruit juice manufacturer
Which of the following is a cost of inflation?
a. shoeleather costs b. menu costs c. relative price variability d. All of the above are correct.
Which of the following is the most powerful argument for putting restraints on policy makers (as opposed to self-restraint by policy makers themselves)?
A) time inconsistency B) uncertainty about Okun's coefficient C) uncertainty about the natural rate of unemployment D) uncertainty about the timing of policy impacts E) disagreements about the proper structure of an econometric model