A drought causes most fruit crops to fail, decreasing the amount of available fruit. The fruitcake market would see:
A. a decrease in the supply of fruitcake.
B. no change in the supply of fruitcake, but the demand would increase.
C. an increase in the supply of fruitcake.
D. no change in the supply of fruitcake, but the demand would decrease.
Answer: A
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When the CPI rises ________, the inflation rate is ________
A) rapidly; low B) rapidly; high C) steadily; zero D) slowly; high E) rapidly; either high, low, or zero depending on whether production of output is increasing, decreasing, or not changing.
In the multiple regression model, the t-statistic for testing that the slope is significantly different from zero is calculated
A) by dividing the estimate by its standard error. B) from the square root of the F-statistic. C) by multiplying the p-value by 1.96. D) using the adjusted R2 and the confidence interval.
Stagflation refers to
a. inflation that rises and falls from year to year. b. increasing output above full-employment levels and thus fueling inflation. c. sluggish production combined with inflation. d. staggered decreases in the money supply designed to lower inflation.
Which of the following groups is associated with the policy recommendation that the money stock should grow only at the rate of growth in real GDP?
A. Monetarists B. Keynesians C. Classical quantity theorists D. Economic behaviorists