If actual inflation is less than expected inflation, which of the following will be true?
A) The Phillips curve will be a vertical line. B) Real wages will fall.
C) The unemployment rate will fall. D) Real wages will rise.
D
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Bill currently uses his entire budget to purchase 5 cans of Pepsi and 3 hamburgers per week. The price of Pepsi is $1 per can, the price of a hamburger is $2, Bill's marginal utility from Pepsi is 4, and his marginal utility from hamburgers is 6
Bill could increase his utility by: A) increasing Pepsi consumption and reducing hamburger consumption. B) increasing hamburger consumption and reducing Pepsi consumption. C) maintaining his current consumption choices. D) We do not have enough information to answer this question.
Which of the following is a difference between the theories of John Maynard Keynes and the classical economists?
a. Unlike Keynesian economists, classical economists believed that unemployment was a serious long-term problem. b. Unlike Keynesian economists, classical economists advocated that the economy was always in equilibrium. c. Unlike Keynesian economists, classical economists believed that the economy would always settle at full employment. d. Unlike Keynesian economists, classical economists did not believe that the economy was always in equilibrium. e. Unlike Keynesian economists, classical economists believed a glut created an unemployment problem for the economy.
The Fed prefers to change its interest rate target only rarely because
a. those targets affect productivity in the labor force b. a fluctuating stock and bond market signals a recession c. interest rates are greatly overrated as a measure of economic performance d. it is so difficult to do so e. the changes destabilize the financial markets
Moral hazard occurs when
a. an employer closely monitors an employee. b. two people consider a trade with each other and one person has relevant information about some aspect of the product's quality that the other person lacks. c. an employee lacks an incentive to promote the best interests of the employer, and the employer cannot observe the actions of the employee. d. an employee closely monitors the actions of her employer.