The "Taylor rule" is an example of a fixed rule for making monetary policy
a. True
b. False
Indicate whether the statement is true or false
False
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The purchasing power parity predicts that if US price level falls relative to the Mexico price level, then
a. Dollar value will rise relative to the peso b. Dollar value will fall relative to the peso c. There is no effect on either currency d. PPP predicts price level will normalize in the long-run
Answer the following statements true (T) or false (F)
1. The health care industry includes the manufacture and sale of low-fat food. 2. Most industrialized countries emphasize private health insurance paid by employers, to provide coverage for most workers in each nation. 3. Employers in the U.S. started offering health insurance as a fringe benefit to their employees during World War II as a way of getting around the wage controls that were in effect then. 4. The prominence of employer-provided health insurance in the U.S. is one major cause of the overconsumption and rapidly rising costs of health care in the country. 5. The twin problems of health care in the U.S. are the rapidly rising cost of health care and limited access to health insurance coverage.
Any cost of negotiating or enforcing a contract is
a. an external cost. b. a private cost. c. a transaction cost. d. a side payment.
Employees at the university have negotiated a 5 percent increase in wages for the next year, based on their inflation expectations. If inflation is actually 6 percent over the next year, which of the following will occur?
A) Inflation will be 5 percent the following year. B) Real wages for university employees will fall. C) The increase in inflation is expected. D) Unemployment of university employees will rise.