In the aggregate supply-aggregate demand model, if every person in the economy correctly anticipates the inflation rate, the unemployment rate will
A. equal the natural rate of unemployment.
B. be more than the natural rate of unemployment.
C. equal zero.
D. be negative.
Answer: A
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A) 5 units B) 4 units C) 3 units D) 2 units
What do most economists believe concerning the relation between the price level and real output?
Given their skills and education, American workers in hostile regions such as Iraq earn higher incomes than American workers in the homeland. This is partly because:
A. American workers in Iraq face a higher risk of getting kidnapped and killed. B. jobs in Iraq in general require more education. C. the U.S. government restricts the number of American workers to work in Iraq. D. only a few people have the skills necessary for jobs in Iraq.
If a competitive firm is in short-run equilibrium, then:
A. marginal revenue is equal to marginal cost. B. price is greater than marginal cost. C. price is equal to average variable cost. D. price is greater than marginal revenue.