For a given short-run Phillips curve, if expected inflation is 8% but actual inflation is 10%, is the unemployment rate above or below its natural rate?
Unemployment is below its natural rate.
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A profit maximizing perfectly competitive firm would never operate at an output level where a. it would not cover all of its variable costs
b. it was not earning a positive economic profit. c. it was not earning a zero economic profit. d. it was not earning an accounting profit.
When the market for a good is a natural monopoly, this results in a. improved product choice for consumers
b. many producers charging low prices for the good. c. dominance by a single producer of the good. d. increased entry by new producers of the good.
1 A decrease in demand with the supply held constant leads to:
a. a decreased equilibrium price and a decreased equilibrium quantity. b. an increased equilibrium price and an increased equilibrium quantity. c. a decreased equilibrium price and an increased equilibrium quantity. d. an increased equilibrium price and a decreased equilibrium quantity.
Exhibit 11-13 A monopsonist's supply and marginal revenue product data Workers Wage Rate MRP 1 $ 8 $50 2 9 25 3 10 20 4 11 17 5 12 16 6 13 13 Use Exhibit 11-13. What wage rate will the monopsonist pay the workers?
A. $11. B. $13. C. $12. D. $16.