During an expansion, how do inflation and unemployment typically change?
A) Inflation and unemployment both fall. B) Inflation falls and unemployment rises.
C) Inflation and unemployment both rise. D) Inflation rises and unemployment falls.
D
You might also like to view...
We would not expect a Japanese financial asset and a U.S. financial asset with identical risk, liquidity, and information characteristics to have different expected returns because
A) the U.S. and Japanese governments have pledged themselves to avoid this outcome. B) traders would buy the asset with the higher expected yield and sell the asset with the lower expected yield until the yields were brought into equality. C) traders would sell the asset with the higher expected yield and buy the asset with the lower expected yield until the yields were brought into equality. D) the exchange rate between the dollar and the yen would adjust automatically to eliminate any difference in yields.
One reason that U.S. exports of commercial services have increased steadily over the past 25 years is that
A) European and Asian nations have shown little interest in developing their own commercial services sectors. B) the United States has made significant investments in new information technologies. C) the U.S. government owns and operates most of the economy's service sector. D) the U.S. economy operates like one big corporation.
Because of its effect on the amount of capital per worker, in the short term an increase in the working population is likely to
a. raise productivity. Other things the same, this increase will be larger in a poor country. b. raise productivity. Other things the same, this increase will be larger in a rich country. c. reduce productivity. Other things the same, this decrease will be larger in a poor country. d. reduce productivity. Other things the same, this decrease will be larger in a rich country.
The mix of consumer purchases that maximizes the utility attainable from available income is called the
A. Optimal consumption. B. Total utility combination. C. Maximum consumption. D. Marginal utility combination.