The natural rate hypothesis asserts that
A) changes in the unemployment rate from changes in the inflation rate are temporary.
B) changes in the unemployment rate are natural and long-lasting.
C) when prices change, the inflation rate changes temporarily and then returns to its natural rate.
D) changes in the natural unemployment rate are only temporary.
E) price changes occur at a natural rate, near a 6 percent average inflation rate.
A
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Which of the following functions does the Federal Reserve System not perform?
A. Lending money to banks and thrifts. B. Providing banking services to the general public. C. Providing financial services to the Federal government. D. Issuing the paper currency in the economy.
In the above diagram the range of diminishing marginal returns is:
A. Q1Q2. B. 0Q3. C. Q1Q3. D. 0Q2.
The value of the slope of a society's production possibility frontier is called its
A. inflation rate. B. marginal rate of substitution. C. unemployment rate. D. marginal rate of transformation.
Refer to the information provided in Figure 28.7 below to answer the question(s) that follow.
Figure 28.7Refer to Figure 28.7. If the economy is at Point A, an increase in money supply will move the economy to Point ________ in the short run.
A. E B. B C. C D. D