In the expectations-augmented Phillips curve, ? = ?e - 3(u - 0.06). When ? = 0.06 and ?e = 0.03, the unemployment rate is
A) 0.04.
B) 0.05.
C) 0.06.
D) 0.07.
B
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Slope is calculated as rise / run
Indicate whether the statement is true or false
Macroeconomics is concerned with the behavior of all of the firms in a particular industry, while microeconomics focuses on a single firm in the same industry
Indicate whether the statement is true or false
The "new growth theory" of economic growth emphasizes the importance of
A. Household saving as a source of funds for investment. B. Investing in new plants and equipment. C. Investing in ideas. D. Borrowing funds for investment from foreign sources.
A purely self-interested diner is more likely to tip:
A. only when dining in a very up-scale restaurant. B. only when dining in a restaurant at which he often eats. C. always, to assure good service. D. whenever he can afford to.