If expectations of inflation are greater than actual inflation, the short-run Phillips curve will eventually shift upward.
Answer the following statement true (T) or false (F)
False
If expected inflation is greater than actual inflation, expectations will adjust downward (closer to actual inflation) and shift the short-run Phillips curve down.
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In the bond market, the seller is considered to be
A) the lender. B) the borrower. C) the lender or the borrower depending upon the use to which the funds are put. D) the lender or the borrower depending upon whether interest rates are rising or falling.
Which of the following is NOT a likely market solution to the lemons problem?
A) average cost pricing B) product warranty C) industry standard D) product certification
Which of the following is not included as "net income" in the U.S. balance of payments?
a. Profits earned by U.S. companies from foreign operations and reinvested abroad. b. Profits earned by U.S. companies from foreign operations. c. Foreign dividends received by U.S. residents. d. U.S. interest paid to foreigners. e. All the above are includedas "net income" in the U.S. balance of payments.
In a long-run equilibrium,
a. excess capacity applies to monopolistically competitive firms but not to competitive firms. b. zero economic profit applies to competitive firms but not to monopolistically competitive firms. c. markup over marginal cost applies to both monopolistically competitive and competitive firms. d. product variety externalities apply to both perfectly competitive firms and monopolistically competitive firms.