If policy makers do nothing in response to an inflationary gap, what will happen?
a. a rapid movement toward lower unemployment and higher inflation
b. a rapid movement toward lower unemployment and lower inflation
c. a slow movement toward higher unemployment and higher inflation
d. a slow movement toward lower unemployment and lower inflation
c
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When a monopolist chooses the level of output where marginal cost equals marginal revenue:
A. profits are maximized. B. price is set at marginal revenue. C. price is equal to average total costs. D. total revenue is maximized.
To calculate tax revenue:
A. divide total revenues by the tax per unit. B. multiply total revenues by the tax per unit. C. multiply the tax per unit by the number of units of the item being taxed. D. multiply the tax per unit by the price of the unit being taxed.
Convertible stockholders are paid dividends before common and preferred stockholders
Indicate whether the statement is true or false
Normative economics is:
a. based on facts b. based on value judgments c. based on the use of the scientific method d. applicable only to macroeconomics