Assuming that GDP currently equals potential GDP, a cost-push inflation could result from which of the following?
A. a decrease in tax rates
B. an increase in the labor force
C. a large crop failure that boosts the prices of raw food materials
D. an increase in the nation's capital stock
Ans: C. a large crop failure that boosts the prices of raw food materials
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A reduction in the price charged for luncheon specials by a downtown cafeteria will
A) affect the demand (curve) for that cafeteria's luncheons if its competitors react. B) have no effect on the demand for lunch at other downtown restaurants. C) increase the cafeteria's gross revenue from lunch business. D) increase the cafeteria's net revenue from lunch business if the demand is elastic. E) increase the cafeteria's net revenue from lunch business if the demand is inelastic.
The majority of American workers are employed in the service sector of the economy
a. True b. False Indicate whether the statement is true or false