Higher rates of anticipated inflation would tend to:
a. increase velocity and decrease nominal GDP.
b. increase velocity and increase nominal GDP.
c. decrease velocity and decrease nominal GDP.
d. decrease velocity and increase nominal GDP.
b
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Downward wage rigidity:
A) leads to frictionless labor markets. B) causes the wage to be above the market clearing wage. C) helps lower unemployment. D) is common only in industries with strong labor unions.
The table above shows the distribution of income in Swacko. The government of Swacko imposes a 20 percent tax on people with the highest 40 percent of income
The government then distributes 40 percent of the tax collected to the lowest 20 percent and 30 percent to the second 20 percent and the middle 20 percent. After the redistribution, the Lorenz curve for income ________. A) is equal to the line of equality B) equals the Lorenz curve for wealth C) is closer to the line of equality D) is above the line of equality
According to aggregate demand and supply analysis, America's involvement in the Vietnam War had the effect of
A) increasing aggregate output, lowering unemployment, and raising the inflation. B) decreasing aggregate output, lowering unemployment, and lowering the inflation. C) increasing aggregate output, raising unemployment, and raising the inflation. D) decreasing aggregate output, raising unemployment, and lowering the inflation.
The neoclassical perspective on macroeconomics holds that the economy will fluctuate around its potential GDP and its natural rate of __________________ in the long run.
a. unemployment b. production c. supply d. demand