If the actual inflation rate exceeds the expected inflation rate, then:
a. the economy is operating along the long-run Phillips curve
b. unemployment exceeds the natural rate.
c. maintaining the existing unemployment rate will require increasing inflation in the long run.
d. the actual rate will tend to fall toward the expected rate.
e. unemployment will tend to decrease in the long run.
c
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Which of the following events would result in a greater demand for U.S. dollars in the foreign exchange market, ceteris paribus?
A. An increase in interest rates in the United States. B. Higher tariffs imposed by the United States on imports. C. Higher quotas imposed by the United States on imports. D. An increase in interest rates in Japan.
Which of the following would tend to raise the value of the U.S. dollar in foreign exchange markets?
A. A rise in U.S. interest rates B. An easy monetary policy in the United States C. A contractionary fiscal policy in the United States D. An increase in the U.S. demand for foreign oil
Taxi medallions were issued in New York City to:
A. increase the wages of taxi drivers. B. help new immigrants find jobs. C. raise revenue for the city. D. help commuters afford transportation.
In industrially advanced countries, the price elasticity of demand for health care is about:
A. 2.0. B. 0.2. C. 4.5. D. 1.0.