The macroeconomic conditions during the mid-1990s confounded many economists because of the simultaneous occurrence of
a. low unemployment and decreasing inflation rates.
b. low unemployment and increasing budget deficits.
c. low unemployment and increasing interest rates.
d. high unemployment and increasing inflation rates.
a
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Refer to Figure 16-1. Suppose the economy is in short-run equilibrium above potential GDP and automatic stabilizers move the economy back to long-run equilibrium
Using the static AD-AS model in the figure above, this would be depicted as a movement from A) D to C. B) B to A. C) C to B. D) E to A. E) A to E.
The marginal product of any input is the
a. increase in total cost associated with a one-unit increase in production. b. change in total output associated with a $1.00 increase in total cost. c. increase in total cost resulting from the hiring of an additional worker. d. increase in total output obtained from one additional unit of that input.