In the nineteenth century, some countries were on a gold standard so that on average the money supply growth rate was close to zero and expected inflation was more or less constant. For these countries during this time period, we find that increases in actual inflation were generally associated with falling unemployment. These findings
a. are consistent with Friedman and Phelps's theories, because they argued that when inflation was higher than expected, unemployment would fall.
b. are consistent with Friedman and Phelps's theories, because they argued that when prices rose unemployment would fall whether actual inflation was higher than expected or not.
c. are inconsistent with Friedman and Phelps's theories, because they argued that higher inflation would increase unemployment.
d. are inconsistent with Friedman and Phelps's theories, because they argued that inflation and unemployment are unrelated.
a
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In 2011, real GDP in the United States was $60 per hour worked. In major European economies, real GDP averaged on $48 per hour worked. This difference is explained by the points that ________ and ________
A) Americans work the same number of hours per week as Europeans on average; Americans are less productive due to technology differences B) Americans are equally as productive as Europeans; Americans work more hours on average C) Americans take more vacations than Europeans; Americans take more sick days than Europeans D) Americans work more hours than Europeans; Americans produce more per hour than Europeans E) Americans work less hours than Europeans; Americans take less sick days than Europeans
When a(n) ________ in investment increases consumption and real GDP, part of the increase in expenditure is on ________, not ________ goods and services
A) increase; exports; U.S.-produced B) decrease; exports ; U.S.-produced C) increase; imports; U.S.-produced D) increase; imports; foreign-produced E) decrease; imports; U.S.-produced
The value of the put option rises when the underlying asset
A) experiences price increases. B) experiences price declines. C) experiences reduced volatility. D) has a relatively short maturity.
Total banking system reserves equal $58.65 billion. The total banking system checkable deposits subject to reserve requirements are $510 billion. The required reserves are $51 billion. What is the required reserve rate, and what is the excess reserve rate?
What will be an ideal response?