Witness the 1970s. Supply shocks such as the dramatic oil price increase explain
a. the fall in unemployment that occurred at the expense of stable prices
b. the shift to the right of the aggregate demand curve
c. what caused price levels and real GDP to increase
d. why stagnation occurred
e. why taxes, government spending, private consumption and investment increased
D
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If an economy maintains a small rate of growth for a long period of time, then the size of the economy:
A. can increase by a large amount. B. can only increase by a small amount. C. will stay nearly constant. D. can never double.
If the economy is represented in the graph shown and is currently at point E3, then the economy must be in:
A. long-run equilibrium. B. a recession. C. an economic boom. D. an economic recovery.
Perfect income equality is achieved if each population quintile receives what percent of income?
a. 20 percent b. 10 percent c. 75 percent d. 50 percent e. 100 percent
The community indifference curves illustrate the technological capabilities of a country.
Answer the following statement true (T) or false (F)