The economy experiences both inflation and unemployment when
A. aggregate demand decreases and aggregate supply remains unchanged.
B. aggregate demand increases and aggregate supply decreases.
C. aggregate demand decreases and aggregate supply increases.
D. aggregate supply decreases and aggregate demand remains unchanged.
Answer: D
You might also like to view...
The question of how much labor a firm will hire comes down to:
A. whether added workers are going to generate more revenue or not. B. if the added workers are going to add profits to the firm. C. whether the value of the marginal product is greater than, less than, or equal to the average total cost. D. the amount of capital that will be required in order to ensure the worker is productive.
Which of the following workers is most likely to lose his/her job during a recession?
A. A barber B. A farmer C. A baker D. A construction worker
What happens when the dollar price of euros changes from $1.00 to $2.00?
a. European products become relatively cheaper to U.S. consumers.
b. A euro becomes worth $0.50.
c. The quantity of euros demanded by U.S. consumers decreases.
d. The U.S. dollar becomes stronger compared to the euro.
In response to accounting scandals in 2002, the federal government passed legislation requiring, among other things, that auditors disclose any potential conflicts of interest. What is the name of this legislation?
A) the Accountant Reliability Act B) the 24th amendment to the Constitution C) the Kennedy-Lott Act D) the Sarbanes-Oxley Act