In which model does there exist a tradeoff between higher inflation and lower unemployment?
a. monetarist
b. real business cycle.
c. new classical
d. a and b.
e. a tradeoff exists in all of the above.
D
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The figure above shows a monopoly firm's demand curve. If the price and quantity of haircuts move from point t to point u, the monopoly's
A) total revenue will rise. B) total revenue will fall. C) total revenue will remain the same. D) marginal revenue will increase.
Holding other things constant, an increase in the inflation rate in the US compared to China may cause the demand for dollar to _____________ and the supply for dollar to __________
a. Increase; decrease b. Increase, increase c. Decrease; Increase d. Decrease; Decrease
Suppose the government of Portico wants to discourage the consumption of tobacco among its citizens. Which of the following strategies would it adopt?
a. Taxing the buyers with relatively elastic demand b. Taxing the buyers with relatively inelastic demand c. Taxing the sellers with relatively inelastic supply d. Taxing the buyers with perfectly inelastic demand
Xavier is a baseball player negotiating a contract to play for a team for one year. He is usually paid $10 million a year for playing, but the salary caps for his team means that he will have to be paid $5 million this year and the remainder next year. If the interest rate is 8 percent, how much should that remaining amount be next year?
A. $5.0 million B. $5.1 million C. $5.4 million D. $6.1 million