The likely result of an economy operating at full employment is:

A. cost-push inflation.
B. demand-pull inflation.
C. a lower rate of growth.
D. hyperinflation.


Answer: B

Economics

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A macroeconomic equilibrium occurs when the

A) quantity of real GDP demanded is greater than the quantity of real GDP supplied. B) quantity of real GDP demanded equals the quantity of real GDP supplied and both equal potential GDP. C) quantity of real GDP demanded equals the quantity of real GDP supplied even if they are not equal to potential GDP. D) quantity of real GDP demanded is less than the quantity of real GDP supplied. E) None of the above answers is correct.

Economics

Briefly describe the most important differences between the market for health care and the market for other goods and services

What will be an ideal response?

Economics

Proponents of strategic trade policy contend that:

a. government should tax domestic firms to generate greater revenues. b. government should encourage imports to prevent monopoly in the domestic market. c. government should provide subsidies to domestic firms with decreasing costs. d. government should discourage domestic firms with decreasing costs from continuing production. e. government should tax domestic import competing firms.

Economics

The Federal Reserve:

A. is the central bank of the United States. B. sets the budget for the U.S. government. C. is appointed by the president of the United States. D. is responsible for funding federal spending.

Economics