Assuming that rational expectations theory does not hold, if a central banks attempts to reduce the inflation rate what happens to the unemployment rate in the short-run?
It will rise.
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A survey recently indicated that being happy at work tends to make workers more productive. What can be a possible error of this conclusion?
What will be an ideal response?
The nominal interest rate approximately equals which of the following?
A) the real interest rate minus the inflation rate B) the real interest rate plus the inflation rate C) the real interest rate minus the growth rate of real GDP D) the real interest rate plus the growth rate of real GDP
Static tax analysis assumes that
A) an increase in a tax rate may lead to a decrease in the tax base. B) an increase in a tax rate will lead to an increase in the tax base. C) an increase in a tax rate will leave the tax base unchanged. D) the tax base will always remain unchanged.
Empirical evidence suggests that the United States ran close to a balanced budget during the World War II
a. True b. False Indicate whether the statement is true or false