The key to understanding the short-run trade-off behind the Phillips curve is that an increase in inflation will decrease unemployment if the inflation is ________ by both workers and firms
A) ignored
B) perfectly predicted
C) expected
D) unexpected
D
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You and your college roommate eat three packages of Ramen noodles each week. After graduation last month, both of you were hired at several times your college income. You still enjoy Ramen noodles very much and buy even more, but your roommate plans to buy fewer Ramen noodles in favor of foods she prefers more. When looking at income elasticity of demand for Ramen noodles,
a. yours would be negative and your roommate's would be positive. b. yours would be positive and your roommate's would be negative. c. yours would be zero and your roommate's would approach infinity. d. yours would approach infinity and your roommate's would be zero.
Which type of expectations can lead to an asset price bubble?
A. Real B. Inverted C. Extrapolative D. Efficient
When the wage rate is $10 per hour and the MPP of a worker is 15 units per hour, the unit labor cost is
A. $10.00 per hour. B. $0.67 per unit. C. $150.00 per hour. D. $15.00 per unit.
The voting paradox is an example of the
A. free-rider problem. B. Tiebout hypothesis. C. the Coase theorem. D. impossibility theorem.