The recession of 1973–1975 was unusual in that both inflation and unemployment increased at the same time. This suggests that the primary cause of the recession was an
A. inward shift of the aggregate demand curve.
B. outward shift of the aggregate supply curve.
C. inward shift of the aggregate supply curve.
D. outward shift of the aggregate demand curve.
Answer: C
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Which of the following statements is true of free riding?
A) Free riding is easy to detect and punish. B) Free riding reduces with social pressure. C) Free riding is not affected by incentives. D) Free riding does not impose a cost on society.
Eight years ago you purchased an asset for $100,000 that has yielded a nominal capital gain of $30,000. If you sold the asset today, your inflation-adjusted capital gains would be zero due to inflation over the last eight years
The capital gains tax is 28 percent. If you sold the asset today your tax liability would be A) zero. B) $28,000. C) $8,400. D) cannot be determined without more information.
Devaluation of a domestic currency
a. is also called revaluation b. refers to an increase in a floating exchange rate c. refers to a decrease in a floating exchange rate d. refers to an increase in a fixed exchange rate e. refers to a decrease in a fixed exchange rate
Between 2006 and 2009, our current account deficit.
A. increased B. decreased C. stayed the same.