An unanticipated increase in the inflation rate will most likely:
A. have no effect on the real value of the national debt.
B. increase the real value of the national debt.
C. either increase or decrease the real value of the national debt, depending on the effect of inflation on capital gains and losses.
D. transfer real wealth from bondholders to the government.
Answer: D
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Regarding the number of discouraged workers,
a. the Bureau of Labor Statistics follows rather loose criteria to classify them. b. they are included in the official unemployment measure. c. there is universal agreement among economists that they should be counted as unemployed d. they are also known as involuntary part time workers. e. no one knows for sure how many are there.
In the long run, there is a no tradeoff between inflation and unemployment
a. True b. False
Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the accompanying graph. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph.
The manufacturer of the over-the-counter pain reliever would ________ total revenue by increasing the price from $15 to $16.
A. experience no change in B. decrease C. increase D. experience an uncertain change in
If a country grows at an average rate of 5 % per year over a 5 year period, then its compounded growth rate over that period is roughly:
A. 32.7 %. B. 27.6 %. C. 35.0 %. D. 20.5 %.