In the long run, sustained inflation is due to
A. a one-time increase in money growth.
B. a continuous increase in aggregate demand.
C. a continuous increase in the money growth rate.
D. the rising price of oil.
Ans: C. a continuous increase in the money growth rate.
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Long-run economic profit does not exist for fixed factors like land because
A) bidding drives up the price of the factor until no economic profit exists. B) there is no market for such factors. C) these factors have L-shaped isoquants. D) these factors will earn economic profits.
The Great Recession ended in June 2009 but the peak in unemployment occurred in _____________.
A. August 2009 B. October 2009 C. January 2010 D. March 2010
Harmful carbon emissions
A) are increasingly produced by industrializing countries such as China and India. B) are only a problem in high-income countries. C) must be reduced by countries individually. D) have little effect on the environment.
The gap that exists when equilibrium real GDP is greater than the level of real GDP shown by the position of the long-run aggregate supply curve is
A. the short-run aggregate supply curve. B. an inflationary gap. C. money illusion. D. a recessionary gap.