The word stagflation describes a situation in which:
a. a higher price level occurs simultaneously with higher employment
b. a lower price level occurs simultaneously with economic growth.
c. a higher price level occurs simultaneously with lower aggregate output.
d. a lower price level occurs simultaneously with federal budget deficits.
e. a higher price level occurs simultaneously with federal budget surpluses.
c
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Which of the following is true?
A) Potential GDP fluctuates around nominal GDP. B) Nominal GDP fluctuates around real GDP. C) Real GDP never equals potential GDP. D) The Okun Gaps are much larger than the Lucas Wedge. E) Real GDP fluctuates around potential GDP.
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for tuna. Which panel best describes what happens in this market when there is a decrease in the productivity of commercial fishermen?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
Comparing the simple Keynesian model with the IS-LM model, in the IS-LM model
a. the government spending multiplier is larger. b. the balanced budget multiplier is larger. c. the tax multiplier is smaller. d. there is no difference between any of the multipliers.Figure 7-2
Explicit costs are costs that:
A. require a firm to spend money. B. are zero when no output is produced. C. do not depend on the quantity of output produced. D. depend on the quantity of output produced.