Suppose that the inflation rate has been 2 percent per year for several years, and the unemployment rate has been stable at 4 percent. Unanticipated changes in government policy cause the inflation rate to increase to 4 percent. In the short run, we would expect the unemployment rate to
A. decrease.
B. increase to 7 percent.
C. increase, but the exact amount cannot be known for sure.
D. remain constant.
Answer: A
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Refer to the table below. The marginal benefit of the 6th unit of activity is:Units ofActivity TotalCostTotalBenefit0$0$01$2$122$6$223$12$304$20$365$30$406$42$427$56$43
A. $7 B. $1 C. $2 D. $4
According to this Application, in the year 2075, the portion of GDP devoted to spending on Social Security, Medicare and Medicaid is expected to be
A) significantly less than the share of GDP devoted to these programs today. B) roughly equal to the total amount of GDP today. C) greater than the consumption spending component's share of GDP in 2075. D) larger than total federal spending's share of GDP today.
Why do economists predict that investment increases when the real rate of interest falls?
What will be an ideal response?
In Plessy v. Ferguson, the Supreme Court condoned separate but equal education
Indicate whether the statement is true or false