When the actual real GDP exceeds the natural real GDP as in Figure 1-2 above, we expect to find that unemployment is
A) high and inflation is high.
B) low and inflation is high.
C) low and inflation is low.
D) high and inflation is low.
B
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Which of the following statements is true?
A) In the long run, the average cost curve is always downward sloping. B) In the long run, the quantities of all inputs are fixed. C) In the long run, the firm's fixed costs are greater than its variable costs. D) In the long run, all costs are variable costs. E) In the long run, the total variable cost equals the total fixed cost.
Refer to Figure 18-1. The excess burden of the tax is represented by the area
A) E + H. B) F + G. C) B + C + F + G. D) B + C.
Suppose that deposit insurance were reduced to a maximum of $50,000 per account (instead of $250,000). This would address the specific market imperfection of
a. externalities. b. imperfect information. c. rent seeking. d. moral hazard.
Although the possibility exists for an economy to experience stagflation, it has never actually happened in the United States
Indicate whether the statement is true or false