In what way do policymakers have to face a trade-off between inflation and unemployment?
A. The cost of reducing inflation by restrictive fiscal and monetary policies is a temporary increase in unemployment.
B. The cost of reducing inflation by restrictive fiscal and monetary policies is a permanent increase in unemployment.
C. The cost of reducing unemployment by expansionary fiscal and monetary policies is virtually nonexistent.
D. The cost of reducing unemployment by expansionary fiscal and monetary policies involves higher inflation during recessions.
Answer: A
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Goodyear produces tires for automobiles, 50,000 in all. Suppose 40,000 go on new cars and are sold as part of each car, while the other 10,000 are produced as replacement tires and are sold individually. How many tires would be counted in current GDP?
a. 50,000 . because everything produced is counted b. 40,000 because only the ones on new cars are counted c. 10,000 because 40,000 will be counted in the value of the new cars d. 0 because they are all intermediate goods e. 10,000 because they are the only "final" goods and services in the total
According to the Foreign Corrupt Practice Act (FCPA), a bribe ________ have to be paid to be illegal, and a bribed official ________ need to carry through on the promised action in order for the bribe to be illegal.
A) does not; does B) does; does not C) does; does D) does not; does not