Which of the following best describes stagflation?
a. Rising unemployment together with economic growth
b. Deflation coupled with a decline in money supply
c. Deficits coupled with rising unemployment
d. Rising unemployment and high inflation rates
e. Inflation coupled with balance of trade deficits
d
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Interest rates set by the European central bank during the period 1999-2004 resulted in what situation compared to that in the United States?
a. European rates were exactly the same as those in the United States, resulting in uncovered interest parity. b. European rates were consistently higher than U.S. rates. c. European rates were consistently lower than U.S. rates. d. At first the European rates were much higher, but then the ECB acted aggressively to lower them.
When a nation experiences economic growth:
A) its production possibilities curve shifts outward. B) its production possibilities curve shifts inward. C) it has been able to reach full employment. D) it has moved to a more consumer-oriented position on its production possibilities curve.