Based on the theory of the expectations-augmented Phillips curve, if the expected inflation rate is 2%, the short-run Phillips curve will
A) have a kink at an inflation rate of 2%.
B) be the same as the long-run Phillips curve.
C) intersect the long-run Phillips curve at the natural unemployment rate, when the inflation rate is 2%.
D) be horizontal at an expected inflation rate of 2%.
C
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In order to obtain the data used to calculate the unemployment rate, the Bureau of Labor Statistics
A) adds the number of people collecting unemployment insurance from each state. B) adds the state unemployment claims reports. C) uses a survey from 60,000 households. D) adds together all the reports of layoffs from businesses. E) uses a survey from 160,000 firms.
Refer to Figure 12-5. If the market price is $20, what is the amount of the firm's profit?
A) $5,400 B) $6,750 C) $8,100 D) $16,200
Which of the following types of mortgage loans became more common during the housing boom of the early-to-mid 2000s?
A) those with flawed credit histories B) thirty-year, fixed-rate mortgages C) prime Mortgages D) those with down payments of at least 20%
The Taylor rule specifies
a. a constant relationship between interest rates and output. b. a constant relationship between interest rates, output, and inflation. c. a flexible relationship between interest rates, output, and inflation. d. a fixed relationship between inflation and output. e. none of the above.