An activist policy to promote high employment ________
A) could lead to inflationary pressures from an ensuing temporary negative supply shock
B) might incentivize workers to push for higher wages beyond what productivity gains can justify
C) could lead to inflationary pressures from an ensuing increase in aggregate demand
D) all of the above
E) none of the above
D
You might also like to view...
Dan missed class the day the professor covered the circular flow model. Dan asked his friend Joan to explain markets to him. Joan correctly stated that a market
A) must have many buyers and only one seller, who is willing to sell to all the buyers. B) is only a place to purchase groceries. C) requires a physical location for buyers and sellers to get together. D) must include a written contract between buyers and sellers. E) is any arrangement that brings buyers and sellers together.
Seigniorage is defined as the difference between the exchange value of a money and its cost of production
Indicate whether the statement is true or false
As the quantity of labor increases, the marginal product of capital
A) is constant. B) increases. C) decreases. D) may either increase or decrease.
If consumption of education creates an external benefit, then in order to increase efficiency relative to the outcome determined by private decisions,
a. more education must be produced. b. the same amount of education must be produced, and the price should be lower. c. less education must be produced, and the price should be higher. d. less education must be produced, and the price should be lower. e. less education must be produced at the same price.