Stagflation is the simultaneous occurrence of
A) low inflation and high unemployment.
B) high inflation and low unemployment.
C) low inflation and low unemployment.
D) high inflation and high unemployment.
D
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Explain how a change in tax rates influences aggregate demand and aggregate supply
What will be an ideal response?
It has been observed in country X that with an increase in college enrollment over a period of six years, the demand for televisions has also increased
Would it be right to conclude that the increase in college enrollment has caused the increase in demand for televisions? Why or why not?
Macroeconomic forecasting is made easier due to the fact that
A) real GDP is variable about trend. B) the business cycle has a regular frequency. C) deviations from trend in real GDP are persistent. D) turning points are easy to predict.
Exhibit 11-10 GDP data (billions of dollars) Indirect business taxes$ 600 Depreciation950 Change in business inventories50 Compensation of employees5,400 Corporate profits700 Durable goods600 Exports100 Social Security taxes360 Transfer payments300 Fixed investment950 Government spending800 Imports150 Net interest500 Nondurable goods2,000 Personal taxes1,000 Rental income200 Services4,000 In Exhibit 11-10, and using the expenditures approach, compute net exports (X-M). Which of the following is correct?
A. $500 billion. B. $150 billion. C. $100 billion. D. -$50 billion.