If the Fed tries to lower the unemployment rate so it is lower than the natural unemployment rate, before the expected inflation rate changes, the inflation rate ________ and the unemployment rate ________
A) does not change; falls
B) falls; falls
C) rises; does not change
D) falls; rises
E) rises; falls
E
You might also like to view...
According to this Application, by using a value-added approach to measure Wal-Mart's sales impact on the economy, we are
A) including GDP as a measure of welfare. B) using a chain-weighted index. C) avoiding double-counting. D) excluding the net foreign sector.
Sole proprietorships produce more goods and services than does any other form of business organization
a. True b. False
In a country with a working-age population of 22 million, 16 million are employed, 2 million are and 1 million of the employed are working part-time, half of whom wish to work full-time. The employment-to-population ratio is
A) 65 percent. B) 57.5 percent. C) 72.7 percent. D) 75.5 percent. E) none of the above.
If the demand curve facing a firm had a price elasticity of demand equal to infinity and the firm raised its price, its total revenue would:
A. decrease slightly. B. fall to zero. C. not change. D. increase.