Which of the following will most likely occur during the expansionary phase of a business cycle?
a. Real GDP declines, and the rate of unemployment increases.
b. Real GDP declines, and the rate of inflation is unchanged.
c. Real GDP increases, and rate of unemployment falls.
d. Real GDP is unchanged, and the rate of inflation is unchanged.
C
You might also like to view...
Assume a demand deposit multiplier of 2 and a government expenditure of $10 million. If the Treasury borrows that much from the banking system, bank reserves will
A) rise by $2 million. B) rise by $10 million. C) rise by $20 million. D) remain unchanged.
Contracts are distinguished from tactical alliances by which of the following characteristics:
a. involve sequential responses b. require third-party enforcement c. raise shareholder value d. elicit diminished reactions from competitors
Which of the following is not necessary in order for a firm to engage in price discrimination?
a. The producer must face an inelastic demand curve. b. The producer must face a downward-sloping demand curve. c. There must be at least two identifiable classes of consumers with different price elasticities of demand. d. The producer must be able, at little cost, to distinguish between the different classes of buyers. e. It must be impossible for one buyer to resell to another.
Refer to Figure 6-19. How much tax revenue does this tax produce for the government?
a. $24 b. $30 c. $32 d. $56