If the economy is fully employed, then the inflationary costs of expansionary policy are likely to be:
a. low, and the unemployment gains minimal.
b. low, and the unemployment gains large.
c. high, and the unemployment gains minimal.
d. high, and the unemployment gains large.
Question 2
Which of the following is not a probable consequence of food aid to developing countries?
a. Increased domestic food prices
b. Declining domestic output
c. Misallocation of food supplies
d. Increased dependency on foreign food supplies
e. Increased starvation of the needy
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