Refer to Figure 28-2. Suppose the economy is at point B in the figure above. Which of the following is true?
A) The economy is producing at potential GDP.
B) The expected rate of inflation is 3%.
C) The natural rate of unemployment is 3.8%.
D) The current unemployment rate is 5%.
E) Expected inflation and actual inflation are the same.
B
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As compared to the estimates of the natural rate of unemployment for the United States, those for Europe are
A) higher. B) the same. C) lower. D) higher and more variable.
List the two characteristics that define a public good
What will be an ideal response?
The main reason the United States established a central bank was
a. a desire for a strong centralized financial authority. b. to follow the conclusions of economic theory. c. severe inflation after the Civil War. d. disastrous experiences with financial panics.
Planning from the achieved level refers to:
a. Planning in Japan b. Indicative planning in France c. Soviet planning practice d. All of the above e. None of the above