Given the accelerationist Phillips curve ?? = - 0.3 (U - 6 ) + ?, suppose that inflation in the preceding period was 3 percent, unemployment is 7 percent, and there is no price shock. The current inflation rate is ________
A) 2.7 percent
B) 3 percent
C) 0.9 percent
D) 3.3 percent
E) none of the above
A
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To find aggregate planned expenditures, which of the following must be added to consumption expenditure?
i. net exports ii. investment iii. government expenditure on goods and services A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
According to the equation of exchange, if total output is 2,000 units, the velocity of money is 5, and the money supply is $1,000, the average price per transaction will be
a. $0.50. b. $2.50. c. $5.00. d. $7.50.
Economic theory shows that the current account deficit is always equal to the capital account surplus. This means that
A. the federal budget must always be in balance. B. when a country exports more goods and services than it imports, it also imports assets equal to the difference. C. current account deficits should be avoided. D. trade deficits tend to be eliminated automatically.
The slope of a perfectly elastic demand curve is equal to zero
a. True b. False Indicate whether the statement is true or false