If the economy is producing at potential GDP,
A) the Phillips curve must be positively sloped.
B) unemployment is at its natural rate.
C) inflation in the economy is at its natural rate.
D) the short-run aggregate supply curve must be vertical.
B
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A substantial reduction in the rate of inflation is called:
A. disinflation B. inflation inertia C. hyperinflation D. inflation shock
If a publishing company purchases faster computers to speed up word processing,
a. the marginal product of its editors will increase, which will shift the demand for editors to the right b. the marginal product of its editors will increase, which will shift the demand for editors to the left c. the wages of its editors will increase, which will shift the demand for editors to the right d. the wages of its editors will decrease, which will shift the demand for editors to the right e. the supply of editors will decrease
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The real risk-free interest rate rises and monetary base rises. b. The real risk-free interest rate falls and monetary base falls. c. The real risk-free interest rate rises and monetary base falls. d. The real risk-free interest rate and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Which of the following statements about dumping is true?
A. Dumping helps to improve the importing country's terms of trade. B. Predatory dumping occurs quite frequently in modern markets. C. Consumers and import-competing producers in the importing country are both hurt by dumping. D. Logically, an import country should never allow seasonal and introductory-price dumping.