In the expectations-augmented Phillips curve, ? = ?e - 3(u - 0.06). When ? = 0.06 and ?e = 0.03, the unemployment rate is
A. 0.04.
B. 0.05.
C. 0.06.
D. 0.07.
Answer: B
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A few years ago Netflix (N) pioneered an online DVD rental service. Blockbuster (B), a brick and mortar DVD/video rental company, waited until Netflix had been in business for over a year before deciding whether to establish its own online rental service. At this point, Netflix had to decide whether or not to lower its subscription price in order to deter Blockbuster's entry into the market. Figure 14-1 shows the decision tree for the Netflix-Blockbuster entry game.
Refer to Figure 14-1. If Netflix lowers its price will this deter Blockbuster from setting up an online DVD rental service?
Suppose all individuals are identical, and their monthly demand for Internet access from a certain leading provider can be represented as p = 5 - (1/2)q where p is price in $ per hour and q is hours per month
The firm faces a constant marginal cost of $1. Potential consumer surplus equals A) $4. B) $8. C) $16. D) $32.
A demand schedule is a table that shows the relationship between
a. quantity demanded and quantity supplied. b. income and quantity demanded. c. price and quantity demanded. d. price and income.
If an economy's GDP falls, then it must be the case that the economy's
a. income falls and saving rises. b. income and saving both fall. c. income falls and expenditure rises. d. income and expenditure both fall.