Which of the following scenarios is consistent with typical estimates of the sacrifice ratio?
a. Inflation is reduced from 4 percent to 1 percent, and annual output falls by 10 percent.
b. Inflation is reduced from 6 percent to 4 percent, and annual output falls by 10 percent.
c. Inflation is reduced from 8 percent to 5 percent, and annual output falls by 9 percent.
d. Inflation is reduced from 3 percent to 2 percent, and annual output falls by 3 percent.
b
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Which of the following is the best example of an investment in human capital?
a. on-the-job training received by an apprentice electrician b. an increase in the number of hours worked per week by a worker in an unskilled laboring job c. the purchase of company stock by a worker d. payments into a retirement pension plan by a skilled laborer
Changes in real GDP reflect only changes in the amounts being produced
a. True b. False Indicate whether the statement is true or false
Western Union's role in foreign-exchange trading is best described as ________.
A) setting a fair exchange rate in multiple currencies B) transferring currency from one country to another C) transferring Mexican pesos from the United States to Mexico D) handling all money transfers that occur between North an
The buyer of a good has less information than the seller of the good. This is a case of
A. externality information. B. free ridership. C. asymmetric information. D. biased information. E. a public good not being a private good.