For a number of years country A had inflation of 3% but for the last five years has had inflation of 6%. Country B had inflation of 4% for many years, but very recently inflation unexpectedly rose to 9%. Other things the same, in which of the countries would the higher inflation rate be more likely to reduce unemployment?
a. both country A and country B
b. neither country A nor country B
c. country A but not country B
d. country B but not country A
d
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Both liberal and conservative economists believe that:
A. that people make choices without reasoning. B. economic incentives are important. C. people are little influenced by sociological effects. D. they have nothing in common.
If Sam, the Pizza Man, lowers the price of his pizzas from $6 to $5 and finds that sales increase from 400 to 600 pizzas per week, then the demand for Sam's pizzas in this range is:
A. inelastic. B. elastic. C. unit elastic. D. inferior.
For a given level of inflation, if there is a greater willingness by foreigners to purchase domestic goods, then the ________ shifts ________.
A. aggregate demand curve; right B. aggregate demand curve; left C. short-run aggregate supply line; downward D. short-run aggregate supply line; upward
The market system's answer to the fundamental question "What will be produced?" is essentially:
A. "Goods and services that are profitable." B. "Low-cost goods and services." C. "Goods and services that can be produced using large amounts of capital." D. "Goods and services that possess lasting value."