One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired.
B. prices tend to adjust more quickly downward than upward.
C. wages are sticky downward.
D. input prices increase with output prices.
Answer: C
You might also like to view...
If the Fed pursues expansionary monetary policy then
a. the money supply will decrease, interest rates will rise and GDP will fall. b. the money supply will decrease, interest rates will fall and GDP will fall. c. the money supply will increase, interest rates will rise and GDP will rise. d. the money supply will increase, interest rates will fall and GDP will rise.
In Econland population increased from 1 million to 1. 1 million, the number of employed workers increased from 500,000 to 600,000, but average labor productivity decreased from $20,000 per worker per year to $19,000 per worker per year. Total output in Econland ________ and the average standard of living ________.
A. increased; increased B. decreased; decreased C. increased; decreased D. decreased; increased
In the basic closed-economy ISLM model, the LM curve can be described by an equation where
A) output is a function of consumption. B) money is a function of interest rates. C) output is a function of money. D) interest rate is a function of output.
The ____ is the government agency with the task of developing and enforcing policies that are aimed at protecting the environment
a. FDA b. DOI c. FEMA d. EPA