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
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If nominal GDP increases by 5 percent a year and the GDP price index rises by 2 percent a year, then real GDP increases by ________
A. 7 percent a year B. 3 percent a year C. 2.5 percent a year D. 10 percent a year
In perfect competition, no individual producer can influence price because
a. each contributes an insignificant amount to total supply. b. they are ignorant of the market price. c. it is set by monopolists. d. it is regulated by the government.
This agency is responsible for preventing businesses from engaging in misleading advertising, unfair trade practices, and monopolistic actions, as well as for protecting consumer rights
A) Environmental Protection Agency B) Food and Drug Administration C) Equal Employment Opportunity Commission D) Federal Trade Commission
In the money market, an increase in money supply will: a. increase the demand for money at each interest rate
b. decrease the demand for money at each interest rate. c. encourage people to exchange money for interest-bearing assets. d. encourage people to exchange interest-bearing assets for money. e. increase the interest rate.