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Unformatted text preview: te of unemployment in the economy is determined by the Congress and the president of the country. Answer: FALSE Diff: 1 Topic: Unemployment Skill: Fact 7.2 Infl
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1) In which of the following conditions is the inflation rate likely to fall and the unemployment rate likely to rise? A) hyperinflation B) recession C) boom D) stagflation Answer: B Diff: 2 Topic: Inflation Skill: Analytic AACSB: Analytic Skills 2) Which of the following statements is TRUE? A) The costs of recessions are distributed equally among all groups of the population. B) Recessions tend to increase the demand for imports and therefore improve the nation's balance of payments. C) Recessions may increase efficiency by driving the least efficient firms in the economy out of business. D) A recession may lead to an increase in the inflation rate. Answer: C Diff: 3 Topic: Inflation Skill: Analytic AACSB: Analytic Skills 3) An boom tends to ________ the demand for imports, which ________ a na...
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