The Phillips curve is
A. a positive relationship between price stability and constant, small-increment changes in the fiscal policy on the part of the Fed.
B. a negative relationship between the inflation rate and the unemployment rate, at least in the short run.
C. a positive relationship in the long run between the rate of inflation and the rate of unemployment.
D. a positive relationship between the unemployment rate and the real Gross Domestic Product (GDP) level.
Answer: B
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Refer to Table 2-18. What is Mickey's opportunity cost of making a hat?
A) 1/10 of an umbrella B) 1/5 of an umbrella C) 5 umbrellas D) 10 umbrellas
If a 10 percent price increase causes the quantity demanded for a good to decrease by 20 percent, demand is elastic
a. True b. False Indicate whether the statement is true or false
Which of the following statements best describes the problems faced by workers in low-income countries?
a. The real problem for many workers in low-income countries is that globalization has made their lives worse, and that they have so few good life alternatives. b. The real problem for many workers in low-income countries is that globalization has made their lives worse, although it has created a few good life alternatives. c. The real problem for many workers in low-income countries is not that globalization has made their lives worse, but rather that they now have so many life alternatives. d. The real problem for many workers in low-income countries is not that globalization has made their lives worse, but rather that they have so few good life alternatives.
Answer the next question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year.YearUnits of OutputPrice per Unit18$22103315441855206In year 4, nominal GDP would be ________.
A. $316 B. $60 C. $120 D. $90