Given the accelerationist Phillips curve ?? = - 0.3 (U - 6 ) + ?, suppose that inflation in the preceding period was 3 percent, unemployment is 6 percent, and there is a price shock of 2 percent. The current inflation rate is ________
A) 3 percent
B) 0.2 percent
C) 5 percent
D) 1 percent
E) none of the above
C
You might also like to view...
Free-riding is linked to an absence of monitoring behavior
Indicate whether the statement is true or false
Many health economists believe that health-care reform will:
a. decrease demand for new, better, and more expensive medical advances. b. lower premiums for young adults c. eliminate private health insurance entirely. d. have a very limited effect on reducing government health-care expenditures.
In a perfectly competitive market, which two conditions must be met to achieve long-run equilibrium?
a. Productive efficiency and allocative efficiency b. Allocative efficiency and profit maximization c. Productive efficiency and low average costs d. Zero economic profits and zero accounting profits
ItemBillions of DollarsCheckable Deposits$2,000Small Time Deposits350Currency Held by the Public80Savings Deposits, Including Money-Market Deposit Accounts1,300Money-Market Mutual Funds Held by Individuals600Money-Market Mutual Funds Held by Businesses700Refer to the above table. The size of the M2 money supply is:
A. $3,730. B. $4,470. C. $4,330. D. $3,980.