Multiple Choice
What is the primary reason that changes in total spending lead to cyclical changes in output and employment?
A) Government is unable to respond by changing the amount of money in circulation.
B) Changes in total spending cause supply shocks that cause cyclical variation.
C) Prices are sticky in the short run.
D) Prices are flexible in the long run.
Correct Answer:
Verified
Correct Answer:
Verified
Q79: Inflation that occurs when total spending is
Q80: When total input costs rise slower than
Q81: When there is demand-pull inflation, people's total
Q82: If the natural rate of unemployment was
Q83: Alex works in his own home as
Q85: Cyclical unemployment results from<br>A) a deficiency of
Q86: The type of unemployment associated with recessions
Q87: Structural unemployment<br>A) is also known as frictional
Q88: Assume that there is a fixed rate
Q89: Most economists agree that the immediate cause