A shift from AD1 shifts to AD2 would be consistent with what economic event in U.S. history?
Refer to the figure above.
A. Demand-pull inflation in the late 1960s
B. Cost-push inflation in the mid-1970s
C. Full-employment in the late 1990s
D. Recession in 2007-09
A. Demand-pull inflation in the late 1960s
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Distinguish a direct and an inverse or negative relationship. Provide an example of each type of relationship
A firm's profit is
a. greater if it is a corporation rather than if it is a sole proprietorship b. higher if it raises its price than if it does not c. lower if it lowers its price than if it does not d. never taxed by the government e. its revenue minus its costs
Which of the following statements regarding the consumer price index and the GDP deflator is correct?
a. The two price measures are always equal. b. Divergence between the two price measures is the rule, not the exception. c. Divergence between the two price measures is the exception, not the rule. d. None of the above is correct.
Assume potential GDP is 7T. If the economy is at a short run equilibrium where real GDP is at 8T then there is an ____ and a labor ___
a. expansion; surplus b. recession; shortage c. recession; surplus d. expansion; shortage