Which of the following statements most likely describes what occurred in this economy?
a. Stagflation resulted from the decrease in price levels coupled with lower output.
b. An inflationary gap resulted due to the shift from RGDPNR to RGDP2.
c. Output decreased and unemployment increased.
d. An increase in consumer confidence shifted AD1 to AD2.
c. Output decreased and unemployment increased.
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If a firm was owned by its employees,
A) there is a higher probability that wage reductions would outweigh layoffs. B) those in charge would not act any differently than regular owners; there would still be layoffs. C) those not in charge would remain risk neutral. D) wage reductions would be lower than if the firm was run for profit.
If two telephones can connect to a central switch, those connection services are complements
Indicate whether the statement is true or false