If the Fed raises the inflation rate and initially expected inflation does not change, in the short run the unemployment rate ________ the natural unemployment rate, and in the long run the unemployment rate ________ the natural unemployment rate
A) is larger than; equals
B) is less than; equals
C) is less than; is larger than
D) is less than; is less than
E) is larger than; is larger than
B
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A payday loan company has decided to open several new locations in the city. To decide where to open these locations it hires consultants and pays them per store opened. At the end of the quarter, the company notices a many of the new stores' sales volume fail to meet expectations. To incentivize the consultants to instead focus on opening profitable stores, the company has decided to alter the
compensation to a percentage of the profit earned per new store. The company should expect to a. Pay the consultants more than they would per store b. Pay the consultants less than they would per store c. Pay the consultants the same d. None of the above
Monopolistically competitive firms ________ because in long-run equilibrium price is ________ marginal cost.
A. prevent the efficient use of resources; less than B. use resources efficiently; greater than C. prevent the efficient use of resources; greater than D. use resources efficiently; equal to
Which of the following factors would decrease in the quantity of investment demanded?
A. A decrease in business taxes B. An increase in the rate of technological change C. An increase in the interest rate D. A decrease in the stock of capital goods on hand
When the price of raisins falls, the quantity of raisins demanded rises. Explain this change in terms of income and substitution effects
What will be an ideal response?