The natural rate hypothesis concludes that when the inflation rate unexpectedly increases, the unemployment rate ________
But when the higher inflation rate becomes the expected inflation rate, the unemployment rate then ________ until it reaches the ________ unemployment rate.
A) decreases; decreases; natural
B) increases; decreases; natural
C) decreases; increases; natural
D) increases; decreases; minimum
E) decreases; increases; maximum
C
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Demand deposits have a ________ maturity
A) 1-year B) 3-year C) 2-year D) 0-year
When a temporary beneficial supply shock hits a small open economy, it causes the current account to ________ and investment to ________
A) fall; fall B) rise; remain unchanged C) fall; remain unchanged D) rise; fall
Mike is able to complete a tax return in two hours earning a fee of $100 . As an alternative, he could pitch in at a volunteer car wash washing four cars in one hour. His roommate Joe would take four hours to complete a tax return earning a $100 fee and also can wash four cars in one hour. Both individuals could benefit if
a. Mike worked on tax returns for eight hours and paid Joe $5 for each car he washed b. Mike worked on tax returns for eight hours and paid Joe $10 for each car he washed. c. Mike worked on tax returns for eight hours and paid Joe $15 for each car he washed d. Joe worked on tax returns for eight hours and paid Mike $10 for each car he washed
A dominant strategy:
A. is always the same for all players of a game. B. exists in every game. C. is the best one to follow no matter what strategy other players choose. D. awards the highest achievable payoff in a game.