If the Fed reduces inflation by 2 percentage points and this results in a 6 percentage-point increase in unemployment, then the sacrifice ratio is equal to 3
a. True
b. False
Indicate whether the statement is true or false
False
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Given the scenario described, if the market price of hammers decreased from $15 to $13, which of the following can be said with certainty?
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. A. Bob’s Hardware would no longer participate in the market. B. Total producer surplus would decrease. C. Only Bob's Hardware will experience a drop in producer surplus. D. Bob’s Hardware would continue to participate in the market.
The first step of the four step process is to
a. identify the new equilibrium and then compare the original equilibrium price and quantity to the new equilibrium price and quantity. b. decide whether the economic change being analyzed affects demand or supply. c. draw a demand and supply model before the economic change took place. d. decide whether the effect on demand or supply causes the curve to shift to the right or to the left, and sketch the new demand or supply curve on the diagram.
Specialization in production
a. raises productivity. b. requires money. c. stimulates exchange. d. All of the above are correct.
If the graph shown represents Tina's budget constraint, which of the following consumption bundles can Tina not afford?
A. Two pairs of earrings and four hairbands B. No earrings and six hairbands C. Three pairs of earrings and four hairbands D. Cannot answer this question without knowing Tina's income and the prices of the two goods