In what way do policymakers have to face a trade-off between inflation and unemployment?
A. The cost of reducing inflation by restrictive fiscal and monetary policies is a temporary increase in unemployment.
B. The cost of reducing inflation by restrictive fiscal and monetary policies is a permanent increase in unemployment.
C. The cost of reducing unemployment by expansionary fiscal and monetary policies is virtually nonexistent.
D. The cost of reducing unemployment by expansionary fiscal and monetary policies involves higher inflation during recessions.
Answer: A
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Which statement is true?
A. Every nation should try to be completely self-sufficient. B. International trade lowers our standard of living. C. The basis for international trade is specialization. D. Importing consumer products increases our prices.
Suppose chicken farm waste flowed into a river used by a neighbor for drinking water. The results of the Coase theorem s are relevant when the legal rights to the river are given to:
a. the chicken farm. b. the neighbor. c. either the chicken farm or the neighbor. d. neither the chicken farm nor the neighbor
For several years, the U.S. unemployment rate has been below the European unemployment rate. Offer a Keynesian explanation for this
What will be an ideal response?
Which of the following represents a price elastic supply?
A) The quantity demanded increases 18 percent as a result of a decrease in the price of 8 percent. B) The price rises by 8 percent causing the quantity demanded to fall by 10 percent. C) The quantity supplied increases by 21 percent as a result of an increase in the price of 12 percent. D) The price rises by 22 percent causing the quantity supplied to increase by 3 percent.