One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired.
B. prices tend to adjust more quickly downward than upward.
C. wages are sticky downward.
D. input prices increase with output prices.
Answer: C
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Which of the following is not an excise tax?
a. A tax on cigarettes. b. A tax on beer. c. A tax on corporations. d. A tax on airline tickets.
In general, the two extreme cases of market structure models are represented by:
a. monopolistic competition and oligopoly. b. oligopoly and monopoly. c. oligopoly and perfect competition. d. perfect competition and monopoly. e. perfect monopoly and oligopolistic competition.
The size of changes in output and price level, and how the change in equilibrium relates to potential GDP, depends on whether the shift in the _____ curve is happening in the relatively flat or relatively steep portion of the _____ curve.
a. AD; AD b. AS; AS c. AD; AS d. AS; AD
Perfect competition is an ideal market structure
a. True b. False Indicate whether the statement is true or false