Refer to Figure 28-5. Consider the Phillips curves shown in the above graph. We can conclude from this graph that
A) ceteris paribus, a fall in the rate of inflation to 5 percent will increase unemployment to 7.5 percent in the short run.
B) the natural rate of unemployment in this economy is 5.5 percent.
C) the expected rate of inflation in this economy is 10 percent.
D) All of the above are correct.
D
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An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q. What is average fixed cost equal to when Q = 10?
What will be an ideal response?
A nation's current location on its production possibilities curve can determine the future location of that nation's production possibilities curve
a. True b. False Indicate whether the statement is true or false
If one person's consumption of a good does not preclude another's consumption, the good is said to be:
A. nonrival in consumption. B. rival in consumption. C. nonexcludable. D. excludable.
If the real interest rate in the economy is i and the expected rate of return on additional investment is r, then other things equal:
A. more investment will be forthcoming when i exceeds r. B. less investment will be forthcoming when r rises. C. r will fall as more investment is undertaken. D. r will exceed i at all possible levels of investment.