Explain why the Phillips curve on average is downward sloping
What will be an ideal response?
When unemployment becomes very low, the economy is likely to overheat and this will lead to upward pressure on inflation.
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Which of the following is TRUE regarding the long run for a firm in monopolistic competition?
A) P = MC = ATC B) P = MC = MR C) ATC = MC = MR D) P = ATC
If a firm hires labor for $4,000, pays rent of $1,500, buys raw materials for $6,000 from another firm, earns profits of $500, and sells its output for $14,000, the value added by the firm is _____
a. $12,000 b. $8,000 c. $6,000 d. $2,000 e. $500
All else equal, which of the following would increase the unemployment rate? (i) an increase in the number of women who return to work after being stay-at-home mothers (ii) a preference among older men to retire early (iii) an increase in the maximum number of weeks for which someone can receive government unemployment benefits (iv) an increase in the number of previously unemployed women who
stop looking for work and become discouraged workers a. (i) and (ii) only b. (iii) only c. (ii) and (iii) only d. (ii), (iii), and (iv) only
Suppose that the nominal exchange rate is .80 euro per dollar, that the price of a basket of goods in the U.S. is $500 and the price of a basket of goods in Germany is 400 Euro. Suppose that these values change to .90 euro per dollar, $600, and 600 euro. Then the real exchange rate would
a. appreciate which by itself would make U.S. net exports fall. b. appreciate which by itself would make U.S. net exports rise. c. depreciate which by itself would make U.S. net exports fall. d. depreciate which by itself would make U.S. net exports rise.