In the expectations-augmented Phillips curve, ? = ?e - 3(u - 
). If ? = 0.06 when ?e = 0.06 and u = 0.04, then 
=
A. 0.02.
B. 0.03.
C. 0.04.
D. 0.05.
Answer: C
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If an industry has 25 firms that collectively have $150 million in total sales and the top three firms in this industry account for $78 million in sales and the fifth through twenty-fifth firms account for $60 million in sales, what is the amount of
sales for the fourth largest firm? A) $12 million B) $6 million C) $18 million D) none of the above
A trade deficit involves:
a. net flows of goods from foreign countries to the domestic government. b. net money flows from the foreign firms to the domestic government. c. net money flows from the domestic firms to the domestic government. d. net money flows from the foreign firms to the domestic firms. e. net flows of goods from foreign countries to the domestic firms.
Assume the MPC is 0.625 . Assume there is a multiplier effect and that the total crowding-out effect is $12 billion. An increase in government purchases of $30 billion will shift aggregate demand to the
a. left by $60 billion. b. left by $36 billion. c. right by $68 billion. d. right by $36 billion.
Refer to the given data. If this firm can hire as few or many workers as it wants at $8, it is:
A. hiring labor in a monopsony labor market.
B. hiring labor in a purely competitive labor market.
C. selling its product in a monopolized product market.
D. selling its product in a purely competitive product market.