In the equation, Unemployment rate = Natural rate of unemployment - a × (?ctual inflation - Expected inflation), the variable a is a parameter that measures how much
a. actual inflation responds to expected inflation.
b. expected inflation responds to actual inflation.
c. the natural rate of unemployment responds to unexpected inflation.
d. actual unemployment responds to unexpected inflation.
d
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Refer to Table 11.1. What is the equilibrium level of output, y*?
A) 1,775 B) 2,375 C) 7,100 D) 9,500
? According to Figure 5-13, if the price of good X falls, the optimal combination will move
A. from U1to a point on a higher indifference curve, such as U3. B. from U2to a point on a higher indifference curve, such as U3. C. from U1to a point on a higher indifference curve, such as U3. D. from U2to a point on a higher indifference curve, such as U1.
The paradox of thrift refers to the idea that
A. people who save are usually those who cannot afford it. B. as people become more thrifty, incomes may fall. C. the thrift industry (banks and savings and loans) wants some people to save so that others may borrow. D. saving is necessary for economic development.
When economists make positive statements, they are
a. speaking as scientists. b. speaking as policy advisers. c. making claims about how the world should be. d. revealing that they are very conservative in their views of how the world works.