Suppose you knew that in one year the unemployment rate will be higher than it currently is, and the inflation rate will be 2 percent. Based on the Phillips curve, what can you assume?
a. The unemployment rate is currently at least 5 percent.
b. The inflation rate is currently 2 percent.
c. The inflation rate is currently over 2 percent.
d. The unemployment rate in one year will be at least 5 percent.
c. The inflation rate is currently over 2 percent.
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Refer to Figure 9-1. Under autarky, the consumer surplus is
A) $195. B) $260. C) $300. D) $555.
Refer to Figure 9.6. Before this policy was implemented, consumer surplus was
A) $20. B) $4000. C) $6000. D) $8000. E) $12000.
At the point where consumption equals disposable income, the average propensity to consume equals 1
a. True b. False Indicate whether the statement is true or false
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.