A sudden increase in aggregate demand causes a ________ inflation and ________ output.
A. cost-push; lower
B. demand-pull; higher
C. demand-pull; lower
D. cost-push; higher
Answer: B
You might also like to view...
Principal-agent problems are not addressed in the market for corporate control
Indicate whether the statement is true or false
One major effect of the Great Depression was
a. it reaffirmed everyone's faith that capitalism was a self-correcting system. b. it encouraged voters to limit the role of government. c. the creation of the rational expectations school of economic theory. d. a decreased faith in the ability of economies to automatically correct major problems.
The goals of equity and ________________ are sometimes in conflict.
A. fairness B. efficiency C. capital
(Last Word) In a cap-and-trade program:
A. government fixes the price of pollution rights and firms choose how many permits to purchase. B. government fixes the maximum amount of a pollutant that firms can discharge and issues permits that firms can buy from and sell to each other. C. each firm is provided a fixed number of permits for a particular pollutant and no individual firm is allowed to acquire additional permits. D. firms can emit whatever type of pollutant they want, so long as the total tonnage does not exceed a government-established quantity.