When economists say investment is autonomous, they mean that investment is independent of the level of saving
a. True
b. False
Indicate whether the statement is true or false
False
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According to Okun's Law, for each 1 percentage point that the unemployment rate is above the natural unemployment rate, then
A) the inflation rate is greater than the expected inflation rate by 2 percentage points. B) real GDP is above potential GDP by 2 percent. C) real GDP is below potential GDP by 2 percent. D) the real interest rate is below the natural real interest rate by 1 percentage point. E) the inflation rate is less than the expected inflation rate by 1 percentage point.
According to your textbook authors, monetary calculation would improve if
A) the government subsidizes business production. B) the Fed sought to establish monetary equilibrium. C) Congress seeks to establish a budget surplus. D) domestic producers are protected from foreign competition.
If the expansion of output in an industry leads to unchanged resource prices, the industry is most likely to be a(n):
a. decreasing cost industry. b. increasing cost industry. c. constant cost industry. d. industry characterized by economies of scale.
Stagflation consists of
A) high inflation and low unemployment. B) low inflation and high unemployment. C) high inflation and high unemployment. D) high unemployment and an economy in a deep recession. E) none of the above