Goodland is currently operating at full capacity. The country experienced a sudden boom in economic activity. However, the unemployment rate increased soon afterwards. What is likely to have caused such a phenomenon?
What will be an ideal response?
If before the beginning of a boom, the economy is close to full employment and full capacity utilization, there will be relatively little room for the economy to grow. If so, the optimism or other factors that might have originally triggered the boom are likely to get reversed at some point. This is most likely to have happened in this case.
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The store of value function is defined as the
A) double coincidence of wants that is used in the debate over barter versus money. B) pricing of goods and services in one measure. C) exchange of goods and services directly for other goods and services. D) holding of money from one transaction to be used later in another transaction. E) use of money as a medium of exchange.
Approximately two decades after a "baby boom," one could expect: a. production to change from an interior point to a point along the production possibilities curve. b. a movement along the production possibilities curve from one point to another
c. an outward shift of the production possibilities curve along both axes. d. an inward shift of the production possibilities curve.