Stagflation at the end of the 1970s was marked by increasing inflation and unemployment
Indicate whether the statement is true or false
True
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Macroeconomics first developed as a new subfield of economics:
A. in response to the severe economic hardships of the Great Depression. B. as a result of Adam Smith's publication of The Wealth of Nations in 1776. C. when Adolph Hitler ordered economists to learn more about national economies. D. following the oil price increases of the 1970s.
Population growth is more likely to contribute to economic growth when
A. economic freedom is present. B. technological progress is limited. C. the labor force participation rate does not increase. D. capital accumulation is limited.
When the money supply declines by 10%, in the short run (before the price level adjusts to restore general equilibrium), output ________ and the price level ________.
A. falls; is unchanged B. is unchanged; falls C. is unchanged; is unchanged D. falls; falls
Bobby is offered a job as a salesperson in which there is a 50 percent chance that he will make $2,000 and a 50 percent chance that he will make $10,000. Bobby's utility of wealth curve is shown in the figure above. What is Bobby's cost of risk?
A) $1,000 B) $2,000 C) $3,000 D) $4,000