The potential for a financial breakdown at one financial institution to spread throughout the financial system is known as a

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

As the price level rises, ceteris paribus, people holding some of their wealth in monetary form become

A) less wealthy and they buy less. B) more wealthy and they buy more. C) less wealthy and they buy more. D) more wealthy and they buy less.