Which of the following is true about stagflation? Multiple Choice It can be corrected by increases in aggregate supply. It results in a lower value of the misery index. It can be corrected by demand-side policies. It causes higher prices and lower unemployment.
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Q)Which of the following is true about stagflation?
Multiple Choice
-
It can be corrected by increases in
aggregate supply . -
It results in a lower value of the misery index.
-
It can be corrected by demand-side policies.
-
It causes higher
prices and lowerunemployment .
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- Stagflation is a macroeconomic situation where Question 43 options: GDP falls and unemployment rises prices rise and GDP increases prices rise and unemployment falls prices rise and GDP fallsWhich one of the following is most likely to cause stagflation? Group of answer choices An increase in the county's population. A decrease in international demand for a country's exports. An increase in input prices. A decrease in government spending.Stagflation is caused by an increase in cost-push inflation. The increase in costs can be caused by an increase in wages greater than the increase in productivity. excessive government regulations on business. an increase in taxes imposed on business. All of the above.
- Determine which statements about the Great Recession, in comparison to average post‑World War II (post‑WWII) recessions, are true and which statements are false. The unemployment rate was higher during the Great Recession.The rise in real GDP was greater during the Great Recession.The recovery in output and unemployment took longer after the Great Recession.Which of the following could cause the US economy to go into a recession? a) a declining stock market and an increase in unemployment b) an increase in pessimism by consumers and businesses c) All of the choices are correct d) a decrease in Aggregate Demand e) None of the choices is correctWhich of the below did NOT happen during the Great Recession of Dec. 2007 - June 2009? Group of answer choices Christina Romer, the then chair of President Obama's Council of Economic Advisers estimated that household wealth increased by 5% between December 2007 and December 2008. Banks had made subprime mortgage loans to overly leaveraged American families who could not make their mortgage payments. The American Recovery and Reinvestment Act (ARRA), or President Obama's Stimulus Bill was enacted in 2009. The investment bank, Lehman Brothers, declared bankruptcy leaving all of its creditors high and dry.
- An increase in the price of a barrel of oil will shift the aggregate demand curve to the left and increase the price level/inflation and decrease the level of GDP output True /FalseAccording to classical economic theory, which of the following describes the potential long-run self-correction of the economy depicted in the graph above? a. Consumption will come out of its stagnation and shift AD to the right, bringing output back to full employment levels. b. Wage rates will increase, attracting labor back to full employment levels ans increasing output back to its natural rate. c. Long-run aggregate supply will shift left due to decreases in spending and restore long-run equilibrium. d. Nominal wages will decrease as the duration of unemployment extends, eventually shifting short-run aggregate supply to the right, bringing output back to its natural level. e. Economies do not self-correct.When stagflation began to appear in the US economy in the late 1960s, economists and policymakers were perplexed because they had never seen __________ and __________ at the same time. a. high inflation rates; high interest rates b. a stagnant economy; high unemployment rates c. high unemployment rates; high growth rates d. high inflation rates; high unemployment rates
- Chose one from Multiple choice. 3. Which of the following statements is true if there is an increase in aggregate demand while the economy is in equilibrium on a positively sloping short-run aggregate supply curve? a) Prices rise, national income does not change B) Prices decrease, national income does not change C) Prices go up and national income goes down. D) Prices decrease and national income decreases. E) Prices rise, national income risesRefer to the exhibit. The dollar amounts that go in blanks A, B, C, and D are, respectively,In the Keynesian framework, for each of the following events which might cause a recession and/or inflation? Explain using Aggregate Demand/ Aggregate Supply. a. A large increase in the price of the homes that people own b. Rapid growth in the economy of a major trading partner c. The development of a major new technology offers profitable opportunities for business d. The interest rate rises e. The good imported from a major trading partner becomes much less expensive. 
