If the price level in the current year is much higher than the expected price level, _____
a. firms will increase production beyond the economy's potential level
b. the unemployment rate will increase
c. firms will decrease production below the economy's potential level
d. the short-run aggregate supply curve will become steeper
e. the unemployment rate will fall to zero
a
You might also like to view...
With regard to the cost of the Civil War (1861–1865), Hughes and Cain (2011) argue all of the following except
(a) It mobilized idle men and other resources on a vast scale. (b) The cost of the lives lost can be measured using the concept of "human capital." (c) The war's cost could have purchased all the slaves from their owners at 1860 prices, given each slave family 40 acres and a mule, and still had $3.5 billion left over for "reparations"—back wages to the freed slaves. (d) The real burden was widely felt by those individuals who owned Confederate financial assets, those whose crops and farm animals were sequestered, those whose homes and farm buildings were destroyed, and the dead.
The interest rate:
A. is the price of borrowing money for a specified period of time. B. is expressed as a percentage per dollar borrowed and per unit of time. C. determines the total amount that must be paid back on a loan. D. All of these are true.
A recent study found that currency unions _____ bilateral trade by _____ compared with floating regimes.
A) increased; 90% B) increased; 38% C) decreased; 10% D) decreased; 50%
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.