The economy experiences an increase in the price level and a decrease in real domestic output. Which is a likely explanation?
a. Productivity has increased
b. Excess capacity has decreased
c. Input prices have dropped
d. Government regulations have increased substantially
d. Government regulations have increased substantially
You might also like to view...
The above table presents the balance sheet of the TBK commercial bank. If the desired reserve ratio is 25 percent, what is this bank's desired reserves?
A) $120 B) $150 C) $175 D) $30
If the economy grows, the government's budget position should automatically:
a) Worsen b) Improve c) Stay the same d) Decrease with inflation
Where is testosterone produced?
A. Ejaculatory ducts B. Prostate gland C. Seminal vesicles D. Testes
The cyclically adjusted budget tells us:
A. that in a full-employment economy, the federal budget should be in balance. B. that tax revenues should vary inversely with GDP. C. what the size of the federal budget deficit or surplus would be if the economy was at full employment. D. the actual budget deficit or surplus realized in any given year.