Suppose we observe several years of falling inflation rates for an economy. Which of the following would best explain this phenomenon?
a. Unemployment is probably at the natural rate
b. The unemployment rate must be rising.
c. The unemployment rate must be below the natural rate.
d. The unemployment rate is probably above the natural rate.
e. Aggregate output must be increasing.
d
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Between 1980 and 2005, the Vanguard Index Fund earned 12.3 percent per year, while the average mutual fund investor earned
A. 1.9 percent. B. 2.3 percent. C. 5.1 percent. D. 7.3 percent.
If the ratio of net worth to vault cash is .2, the prime rate is .05, and the required reserve ratio is .25, the demand deposit expansion multiplier is
A) 2. B) 4. C) 5. D) .25.
In 2010, fears were growing that the dollar would experience a significant decline in value. What are the likely implications for the euro-dollar exchange rate?
What will be an ideal response?
According to the graph shown, the amount of deadweight loss created by the imposition of a tariff is area:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. IL
B. JK
C. IJKL
D. FGJK