Movements along the Phillips curve result in the:
a. savings rate varying inversely with the unemployment rate.
b. inflation rate varying directly with the unemployment rate.
c. inflation rate varying inversely with the unemployment rate.
d. interest rate varying inversely with the unemployment rate.
c
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Central banks may need to think about monetary policy in a way that would seek to ______________ the effects of asset price bubbles and leverage cycles on the economy.
a. moderate b. eliminate c. increase d. encourage
When competition is present, self-interested business decision makers have a strong incentive to
a. produce efficiently. b. ignore the wishes of customers who are also self-interested. c. adopt technological improvements slowly in order to avoid making wrong decisions d. maximize price in order to maximize profits.
If the cross-price elasticity is negative, we can conclude that the two goods are ______ because the price of one good and the demand for the other move in opposite direction.
a. surrogates b. substitutes c. complements d. contradictory
Consumers do not prefer gifts-in-kind to cash gifts
Indicate whether the statement is true or false