If the Fed aims to achieve a level of unemployment below its natural rate, it must follow time-inconsistent policies
a. True
b. False
Indicate whether the statement is true or false
True
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Tina has $1,000 that she wants to save for at least five years. It’s important to her that her investment is very low risk, but she would still like to earn some interest on her savings. Which of the following instruments would be the best choice for Tina?
a. Savings account b. Rental property c. Gold d. Certificate of deposit
According to the law of demand, only the price of a good influences the amount people will choose to purchase.
Answer the following statement true (T) or false (F)
Figure 3.3 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, we would expect that:
A. demand will decrease until quantity demanded equals quantity supplied. B. supply will increase until quantity demanded equals quantity supplied. C. price will increase until quantity demanded equals quantity supplied. D. there will be no change in the price since the market is in equilibrium.
Refer to the information provided in Table 8.1 below to answer the question(s) that follow.
Table 8.1 
Refer to Table 8.1. Assume the price of labor (L) is $5 per unit, the price of capital (K) is $10 per unit, and that firms attempt to minimize costs. The marginal cost of producing the third unit of output is
A. $30. B. $40. C. $50. D. indeterminate from this information.