In the expectations-augmented Phillips curve, ? = ?e - 3(u - 0.05). The natural unemployment rate is
A. 0.02.
B. 0.03.
C. 0.06.
D. 0.18.
Answer: C
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Trend refers to
A) increases but not decreases of a variable. B) the difference between the maximum value of the variable and the minimum value of the variable. C) a general tendency for a variable to rise or fall. D) the scale used on the x- and y-axes. E) decreases but not increases of a variable.
If investment demand increases, the equilibrium real interest rate ________ and the equilibrium quantity of investment ________
A) rises; decreases B) falls; decreases C) falls; increases D) rises; increases E) does not change; does not change
A firm, such as a public utility, which is the sole producer in a market in which the government determines prices and standards of service, is known as a(n):
a. local monopoly. b. natural monopoly. c. regulated monopoly. d. oligopoly. e. monopolistically competitive firm.
Economists generally oppose trade restrictions such as tariffs and quotas; however, if one these devices must be used, economists generally prefer tariffs to quotas
a. True b. False