Suppose the current unemployment rate is 15 percent. If it rises to 20 percent
A) the economy will move up along the production possibilities curve.
B) the economy will move closer to the production possibilities curve.
C) the production possibilities curve will shift inward.
D) the economy will operate farther inside the production possibilities curve.
Answer: D
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The CPI compiled by the Bureau of Labor Statistics is used in the computations for the
A. foreign exchange rate. B. inflation rate. C. interest rate. D. unemployment rate.
The price of a stock is equal to the present value of expected future dividend payments from the stock
Indicate whether the statement is true or false
You turn to the bond market page of a newspaper and look under the column headed "Bonds" and see that it says, "Alpha 7 1/2 25" this information indicates that
A. the coupon rate on this bond is 7.5 percent. B. the year this bond matures is 2025. C. the current yield on this bond is 7.5 percent. D. the current yield on this bond has risen 0.25 percent since the previous trading day. E. a and b
Which of the following, if implemented in the Solow growth model, would not lead to a steady state?
A) A higher population growth rate. B) Decreasing returns to scale in production. C) A savings rate that decreases as income increases. D) A constant marginal product of capital.