If the inflation rate is smaller than the nominal interest rate, the real interest rate is
A. zero.
B. positive.
C. negative.
D. either positive or zero.
Answer: B
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The duration of unemployment tends to
A) increase when employment increases. B) increase when business activity decreases. C) increase when the labor force shrinks. D) stay consistently the same over long periods of time.
The monopolistic competition market structure is characterized by:
A. few firms and similar products. B. many firms and differentiated products. C. many firms and a homogeneous product. D. few firms and a homogeneous product.
In 1973, the oil embargo sparked a wage-price spiral due to higher energy costs. In 2004, with a similar spike in oil prices, there was not a corresponding wage-price spiral because
A. the jump in prices did not last very long. B. the economy avoids unanticipated inflation. C. of alternative energy sources. D. of heavy government regulation.
Marginal Revenue is
A) the increase in total revenue from selling one more unit of output. B) equal to P(1+1/?). C) equal to P when the price elasticity of demand is infinite. D) All of the above.