Which of the following best explains how an economy could simultaneously experience high inflation and high unemployment?
A) The government increases spending without increasing taxes
B) The government increase taxes without increasing spending
C) Inflationary expectations decline
D) Women and teenagers stay out of the labor force
E) Negative supply shocks cause factor prices to increase
Answer: E) Negative supply shocks cause factor prices to increase
Economics
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Which of the following can cause inflation?
A) increases in short-run aggregate supply B) increases in long-run aggregate supply C) decreases in short-run aggregate supply D) decreases in aggregate demand
Economics
Rents for stores at shopping malls are usually tied to the profits of the store. Comment on how this arrangement affects the mall owner's income versus a fixed rent
What will be an ideal response?
Economics