If the federal funds rate is at its target 3.5 percent, inflation is 1.5 percent, and target inflation is 2.5 percent. If the Taylor rule is accurate, the output was:
A. 1.5 percent above potential.
B. 1.5 percent below potential.
C. 1 percent above potential.
D. 1 percent below potential.
Answer: C
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For a person earning $75,000, the marginal tax amount from 10,001 to $15,000 is:
A. $500
B. $750
C. $1,750
D. $2,000
The F/M earnings ratio for full-time workers
a. has been steadily declining. b. has been roughly constant since 1980. c. has increased significantly since 1980. d. increased until 1980, but it has declined steadily during the last two decades.
Suppose a perfectly competitive firm is producing 1,000 units of output and the marginal cost of the 1,000th unit is $7. If the firm can sell each unit of output for $7 and the firm's revenue is sufficient to cover its variable cost, the firm should:
A. leave production unchanged. B. decrease production to lower losses. C. increase price to increase profits. D. increase production to increase profits.
The U.S. Bureau of Labor Statistics defines the unemployment rate as
a. The percentage of the population who are not working b. The percentage of people who are looking for their first job c. The percentage of workers who lose their jobs d. The percentage of the labor force not employed but actively seeking work in the past 4 weeks