A simultaneous increase in both unemployment and inflation is most likely to be the result of a(n):
a. increase in long-run aggregate supply.
b. increase in short-run aggregate supply.
c. decrease in the aggregate demand.
d. simultaneous outward shift of the aggregate demand and supply curves.
e. decrease in the short-run aggregate supply.
e
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Everything else held constant, a decrease in the currency ratio will mean ________ in the M1 money multiplier and ________ in the M2 money multiplier
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
Identify a valid trend observed in U.S. business cycles since 1933. a. Contractions lasted for more than two years on an average. b. There were only two or three complete cycles
c. There was no recession since 1979. d. Expansions generally lasted longer than contractions. e. Each cycle lasted longer than the previous one.
Which of the following is an in-kind transfer payment?
a. Medicaid. b. Social Security. c. unemployment insurance. d. Temporary Assistance to Needy Families.
If a firm responded to a decrease in demand for its product by cutting its price to increase sales, but then all firms experienced a decrease in demand for their products, sticky prices in the aggregate would prevent aggregate demand from rebounding. This is an example of
a. a macroeconomic externality. b. the Expenditure-Output model. c. the expenditure multiplier. d. the coordination argument.