Many economists think that, in the long run, the economy tends to move toward
a. the natural or full-employment rate of unemployment.
b. the natural or full-employment rate of inflation.
c. a severe slump with high unemployment.
d. an accelerating rate of inflation.
a
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At the beginning of 2015, a country is at full-employment. During 2015, oil-producing countries decrease oil production leading to much higher oil prices. The higher oil prices can
A) increase aggregate demand and lead to an expansion. B) increase aggregate supply and lead to an expansion. C) decrease aggregate demand and lead to a stagflation. D) decrease aggregate supply and lead to a stagflation. E) decrease aggregate demand and lead to a higher price level.
Briefly explain why economists think it is better for monopolies to be privately owned than publicly owned.
What will be an ideal response?