The higher the anticipated inflation rate, _____
a. the more workers will ask for in wages and the more firms will agree to pay
b. the more workers will ask for in wages and the less firms will agree to pay
c. the less workers will ask for in wages and the less firms will agree to pay
d. the higher the real wage increases offered by firms
e. the higher the real wage increases asked for by workers
a
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Even a monetary policy based on a rigid high-powered money growth rate rule can lack policy credibility, due in part to ________, while a policy that targets the inflation rate itself ________
A) lags, must have policy credibility by definition B) lags, can lack credibility due to both lags and multiplier certainty C) multiplier uncertainty, must have policy credibility by definition D) multiplier uncertainty, can lack credibility due to both lags and multiplier uncertainty
The elite theory of government maintains that
A. Politicians who have held office for a long time are favored by the voters B. Wealthy, politically powerful people control government, and government has no interest in meeting the needs of ordinary people C. Special interest groups make government policy D. None of the above E. Poor people and people of color should not be allowed to vote
Which is consistent with the law of demand?
a. An increase in the price of ice cream causes an increase in the quantity of ice cream demanded b. A decrease in the price of bagels causes an increase in the quantity of bagels demanded c. An increase in the price of candy bars causes no change in the quantity of candy bars demanded d. A decrease in the price of muffins causes a decrease in the quantity of muffins demanded
Assume that society places a higher value on the last unit of X produced than the value of the resources used to produce that unit. With no spillovers, this information means that:
A. total cost is greater than total revenue. B. price is greater than marginal cost. C. marginal cost is greater than price. D. resources are being overallocated to X.