ASU ECN 211 Hernandez M1, M2, M3 (final study guide with complete solutions) Which of the following claims is consistent with the views of mainstream economists?a.If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will temporarily rise.b.If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will permanently fall.c.If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will temporarily fall.d.If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will permanently rise. - Correct Answer c.If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will temporarily fall.Which of the following is the primary cause of inflation?a.an increase in unemployment b.an increase in the quantity of money c.an increase in productivity 1 / 4
d.an increase in government spending - Correct Answer b.an increase in the quantity of money The primary determinant of a country's standard of living is a.the country's ability to produce goods and services.b.the total supply of money in the economy.c.the average age of the country's labor force.d.the country's ability to prevail over foreign competition. - Correct Answer a.the country's ability to produce goods and services.A production possibilities frontier is bowed outward when a.the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good.b.an economy is self-sufficient instead of interdependent and engaged in trade.
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the rate of tradeoff between the two goods being produced is constant.d.the rate of tradeoff between the two goods being produced depends on how much of each good is being produced. - Correct Answer d.the rate of tradeoff between the two goods being produced depends on how much of each good is being produced.Refer to Figure 1. Which arrow represents the flow of goods and services?a.B b.D c.C d.A - Correct Answer a.B Refer to Figure 1. Which arrow represents the flow of land, labor, and capital?a.C b.
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c.B d.A - Correct Answer a.C Refer to Figure 2, Panel (a). Production is a.possible at points J, L, M, and N, but efficient only at points J, L, and M.b.possible at points J, L, M, and N, but efficient only at point N.c.possible at points J, K, L, and M, but efficient only at points J, L, and M.d.possible at points J, K, L, and M, but efficient only at point K. - Correct Answer c.possible at points J, K, L, and M, but efficient only at points J, L, and M.Refer to Figure 2, Panel (a). The movement from point M to point K could be caused by a.an advance in production technology.b.economic growth.
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