If the sacrifice ratio is 3, then reducing the inflation rate from 5 percent to 3 percent would require sacrificing
a. 2 percent of annual output.
b. 6 percent of annual output.
c. 8 percent of annual output.
d. 11 percent of annual output.
b
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When federal government spending amounts to less than tax revenues, the federal government runs a budget deficit
Indicate whether the statement is true or false
Explain whether you agree or disagree with the following statement: "The reason that inflation is bad is because it increases the cost of living — the costs of goods and services we buy — without increasing income in general."
What will be an ideal response?
Of the four major market structures, oligopoly is the worst at achieving economic efficiency
a. True b. False
When you watch a professional football game, you may see the Nike swoosh on the players' jerseys. When you see people on the street, you may see people wearing Nike T-shirts or Nike shoes. It seems, at times, most everybody sports that swoosh. You are likley to say: "Gosh, Nike must be a monopoly.". But think twice. Is it? To define the market it's in, it would be most helpful if you had
information concerning a. its prices relative to those of other firms producing similar goods, such as Reebok b. the shape of its demand curve c. its cross elasticities of demand with other goods and its market share d. whether or not brand loyalty exists e. whether it advertises or not