Stagflation can be explained by
a. the IS curve shifting up.
b. the IS curve shifting down.
c. the LM curve shifting to the right.
d. the LM curve shifting to the left.
e. none of the above.
E
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Money spent on the purchase of a newly constructed house is included in GDP as a part of ________.
A. household expenditures on durable goods B. personal saving C. gross domestic private investment D. personal consumption expenditures
In the United States, runs on banks are prevented because
A) banks are forbidden to make unprofitable loans. B) banks have the option of denying depositors access to their funds. C) the government guarantees bank accounts for up to $250,000. D) banks keep 100 percent of their deposits on hand.
If the capital stock increases, then the economy can produce ____ output with the ____ amount of labor
a. same, same b. less, same c. more, same d. less, less
If it were not for the automatic stabilizers in the U.S. economy,
a. the Federal Reserve would have less reason than it has now to monitor stock prices. b. it would be more desirable than it is now for the Federal Reserve to target an interest rate. c. a strict balanced-budget rule would be more desirable than it is now. d. output and employment would probably be more volatile than they are now.