A supply shock, such as the OPEC oil-price increases in the 1970s,
A) can lead to accelerating inflation, if an accommodation policy tries to maintain the pre-shock level of real GDP.
B) will cause lower real wages in long-run equilibrium.
C) will reduce the natural level of real GDP.
D) both B and C
D
Economics
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The export of wheat will be included in the calculation of GDP using the ________ method
A) income B) expenditure C) investment D) production
Economics
A critical assumption for the simple money multiplier (1/ rrd) to hold is that
a. banks do not hold excess reserves. b. the public does not increase their level of currency holdings. c. the required reserve ratio has to be greater than one. d. both a and b. e. all of the above.
Economics