Which of the following events is the most likely to create stagflation?
a. An increase in the money supply.
b. A reduction in the amount spent on national defense.
c. A doubling of oil prices.
d. A decrease in investment spending.
c
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When the economy is in short-run equilibrium, there will be ________ output gap.
A. only a recessionary B. no C. either a recessionary or an expansionary D. only an expansionary
When market activity generates a negative externality, the level of output in the market equilibrium is lower than the socially optimal level
a. True b. False Indicate whether the statement is true or false
Which of the following factors affects the marginal productivity of a worker?
a. human capital b. the worker's disposable income c. compensating wage differentials d. discrimination based on age, race, or gender
Which of the following is true?
A. Japan has a high export ratio. B. Ireland has a low export ratio. C. The European nations tend to have lower export ratios. D. The United States has a very low export ratio.