The lack of a long-run tradeoff between the unemployment rate and the inflation rate means the long-run Phillips curve is
A) horizontal.
B) vertical.
C) upward sloping.
D) downward sloping.
E) U-shaped, with higher inflation initially decreasing unemployment and then increasing it back to the natural unemployment rate.
B
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Which of the following increases aggregate demand?
A) a decrease in taxes B) a decrease in foreign income C) a decrease in government expenditure D) a rise in the interest rate
The opportunity cost of a particular activity
a. is the same for everyone pursuing this activity b. may include both monetary costs and forgone income c. always decreases as more of that activity is pursued d. usually is known with certainty e. measures the direct benefits of that activity
Current calculations make it clear that for the vast majority of young workers, the rate of return on Social Security taxes and benefits will be
A. roughly equal to what would have been generated in private stock-market investments. B. greater than what would have been generated in private stock-market investments. C. lower than what would have been generated in private stock-market investments. D. taxed more heavily than what would have been generated in private stock-market investments.
Which of the following would not be counted in the U.S. BOP current account?
A. Helen, an American oil engineer, is a paid adviser to Middle Eastern countries in the area of petroleum extraction. B. General Motors Corporation owns buildings that are situated in Mexico. C. France purchases a new jet fighter aircraft from the Boeing Company in the U.S. D. Martha receives a $50 dividend check on stock she owns in a business in Germany.