How can fighting inflation cause a recession?
A. The Federal Reserve raises interest rates to intentionally slow down the economy.
B. Businesses lay off workers as a way to keep prices from rising too fast.
C. Households stop buying goods and services in response to higher prices.
D. The federal government orders businesses to reduce prices, which raises interest rates.
Answer: A
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An international comparison of eight major industrialized countries reveals the following about the components of GDP: ________
A) the U.S. has one of the largest shares of GDP going to investment B) the U.S. has one of the smallest government share of GDP C) the U.S. runs one of the largest trade deficits D) all of the above E) none of the above
In 2016 the Bureau of Labor Statistics reported that there were 23.5 million people over age 25 who had no high school degree or its equivalent. Of these 9.7 million were employed and .75 million were unemployed. What were the labor-force participation rate and the unemployment rate for this group?
a. 41.3% and 3.2% b. 41.3% and 7.2% c. 44.5% and 3.2% d. 44.5% and 7.2%
The efficient price of a license fee is determined by the difference between
a. Marginal revenue and marginal cost b. Average revenue and marginal cost c. Total revenue and total cost d. Average revenue and total cost e. Total revenue and marginal cost
The government has a budget deficit if
A) its total revenues are equal to its total expenditures. B) its total revenues are less than its total expenditures. C) its total revenues are greater than its total expenditures. D) the money supply is less than total expenditures.