In any economy functioning at potential GDP, there are occasions when the short-term aggregate supply curve unexpectedly shifts, causing inflationary pressures. Which of the following is considered to be a common cause of this type of shift?
A. overoptimistic lending by banks
B. sudden rise in input prices
C. a surge of export sales
D. a wave of government spending
Ans: B. sudden rise in input prices
Economics
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Peaks and troughs of the business cycle are known collectively as
A) volatility. B) turning points. C) equilibrium points. D) real business cycle events.
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Which of the following is NOT a financial intermediary?
A) mutual fund B) bank C) stock exchange D) insurance company
Economics