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
You might also like to view...
Decreases in aggregate demand move the economy down the short run aggregate supply and up the Phillips Curve
a. True b. False Indicate whether the statement is true or false
US recession lasting from December 2007-June 2009
What will be an ideal response?
In the circular flow model, households
A) sell goods and services in the input market. B) and firms spend earnings from resource sales on goods and services in the factor market. C) hire resources sold by firms in the factor market. D) spend earnings from resource sales on goods and services in the product market.
The population growth rate in IACs (industrially advanced countries) in 2000-2010 averaged 0.7% per year. This compares to what percentage growth per year in low-income DVCs (developing countries)?
A. 1.1% B. 2.1% C. 4.0% D. 0.4%