According to Okun's law
A. an increase in inflation above trend, will lower unemployment
B. an increase in real gdp growth above trend, will lower unemployment
C. an increase in interest rates, above trend, will lower unemployment
D. an increase in real gdp growth, above trend, will lower inflation
Ans: B. an increase in real gdp growth above trend, will lower unemployment
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With the debris of more than 50 years of climbing on the beautiful high slopes – oxygen canisters, tents, backpacks and even some bodies – Mount Everest has been called the world's highest garbage dump
It has been suggested that there should be a limited number of climbers allowed on the mountain each year to limit the environmental degradation that occurs. This method of achieving efficient use of a common resource is most like A) a property right. B) an individual transferable quota. C) a production quota. D) a marginal social benefit right.
Refer to Figure 4-4. What is the value of the deadweight loss at a price of $18?
A) $100 B) $180 C) $660 D) $1,040
According to Gordon which of the following statements about Friedman's fooling model is accurate?
A) The demand for labor depends on the nominal wage. B) As prices increase, firms will offer higher real wages; these higher wages will bring forth an increase in the supply curve of labor. C) The supply curve of labor depends on the expected real wage. D) All of the above statements are accurate.
In an economy with a fixed exchange rate, when the market forces try to change the exchange rate, the government:
A. must buy or sell its currency using its own reserve to bring equilibrium in the market to where it has "fixed" it. B. declares it can't change, and holds it constant. C. often has to deal with an unhappy domestic population who are constantly dealing with shortages or surpluses of their currency. D. None of these statements is true.