If the economy is at full employment, then the inflation rate
A) is less than the expected inflation rate.
B) is equal to zero.
C) can be anywhere on a short-run Phillips curve.
D) is equal to the expected inflation rate.
E) exceeds the expected inflation rate.
D
You might also like to view...
A prohibitive tariff has
A) only revenue effects. B) only protective effects. C) both protective and revenue effects. D) neither protective nor revenue effects.
Assuming that the part of the government's budget used for military expenditures reduces the amount available for consumption expenditures and that the benefits to military expenditures take longer to accrue than consumption expenditures, _____
decision-makers will _____. a. democratic; be biased against military spending b. democratic; be biased in favor of military spending c. autocratic; be biased in favor of consumption d. autocratic; be biased in favor of military spending
Suppose the production possibilities for two countries, producing either food or clothing, are shown in the above figure. They can each produce any linear combination as well. Free trade between these two countries will take place
A) as long as Canada is willing to give up 0.25 unit of clothing to get a unit of food. B) as long as USA asks for at least 1.5 units of clothing in exchange for a unit of food. C) as long as Canada asks for at least 3 units of food in exchange for a unit of clothing. D) as long as USA is willing to give up at least 1.5 units of food in exchange for a unit of clothing.
All of the following are characteristics of monopolistic competition EXCEPT
A) a few firms dominate the industry. B) product differentiation. C) many firms in the industry. D) advertising.