The Fed seeks a target rate of inflation of around _____
a. 1 percent
b. 2 percent
c. 3 percent
d. 4 percent
e. 5 percent
b
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When Ronald takes another economics class, other people in society benefit. The benefit to these other people is called the marginal ________ benefit of the class
A) social B) private C) external D) Coasian E) extra
When plasma television sets were first introduced prices were high and few firms were in the market. Later, economic profits attracted new firms and the price of plasma televisions fell. This example illustrates
A) that consumers receive this new technology "free of charge" in the sense that they only have to pay a price for plasma televisions equal to the lowest production cost. B) a decreasing-cost industry. C) an industry with a low minimum efficient scale. D) how fickle consumer demands are.
Regression analysis is used for prediction, while correlation analysis is used to measure the strength of the association between two variables
Indicate whether the statement is true or false
Okun’s law refers to
a) The tendency for recessions in the USA to spread throughout the world b) The generally stable negative relationship between the output gap and deviations of unemployment from the natural rate c) The generally stable positive relationship between the output gap and deviations of unemployment from the natural rate d) The tendency for business cycle volatility to fall over time e) The negative relationship between unemployment and job vacancies