Starting from long-run equilibrium, an adverse inflation shock results in a short-run equilibrium with ________ inflation and ________ output.
A. lower; lower
B. higher; lower
C. higher; higher
D. higher; potential
Answer: B
Economics
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Which of the following is true of transfer programs? a. They involve redistributing income from lower-income individuals to higher-income individuals. b. They place a high implicit tax on work
c. They increase the opportunity cost of leisure. d. They indirectly help in decreasing the unemployment rate in an economy. e. They result in an increased productivity of labor and a rise in the total output of an economy.
Economics
Which point or output-combination in the graph below could the nation produce only if it experienced economic growth?
A. Combination F
B. Combination G
C. Combination C
D. Combination E
Economics