Economists define inflation as
a. The price of necessities like food and gasoline.
b. How fast on average prices are rising in a given period of time
c. The value of the dollar
d. Average house prices in a given area
Answer: b. How fast on average prices are rising in a given period of time
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All else constant, a decrease in the per unit price of labor would create an incentive for a firm manager to substitute labor for capital in the firm's production process
Indicate whether the statement is true or false
Before the financial crisis of 2007, inflation was on the rise. According to the MP curve, this would lead to ________
A) an increase in the real interest rate B) an upward shift of the MP curve, if policymakers opted for autonomous tightening C) a decrease in aggregate output D) all of the above E) none of the above
Medicare and Medicaid were enacted by the Johnson administration in 1965 as amendments to which federal law already in existence?
a. Welfare Act of 1960. b. Social Security Act. c. Employee Retirement and Income Security Act. d. Managed Care Act. e. Equal Rights Act.
The large budget deficits of 2003 and 2006 meant that the federal government was borrowing upwards of $1.7 trillion over the four-year period. If that borrowing limits the ability of the private sector to get financial capital for its purposes, economists would call this
A. forcing aside. B. forcing in. C. crowding in. D. crowding out.