Economic behavior is always rational
a. True
b. False
Indicate whether the statement is true or false
False
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When the actual unemployment rate is likely to exceed the natural rate of unemployment, as in the time intervals between t1 and t2 and t3 and t4 in Figure 1-1 above, we can expect that
A) inflation is speeding up and real GDP is likely to exceed natural GDP. B) inflation is slowing down and real GDP is likely to fall below natural GDP. C) inflation is speeding up and natural GDP is likely to exceed real GDP. D) inflation is slowing down and real GDP is likely to exceed natural GDP.
Phantom capital gains occur when _____
a. an asset increases in real terms, but not in nominal terms b. an asset is constant in real terms, but increases in nominal terms c. an asset decreases in real terms and decreases in nominal terms d. an asset is purchased to be used upon an individual's death
Suppose a decrease in the supply of paper results in an increase in revenue. This indicates that
A) the demand for paper is inelastic. B) the demand for paper is elastic. C) the supply of paper is inelastic. D) the supply of paper is elastic.
Refer to the information provided in Table 20.4 below to answer the question(s) that follow. Table 20.4GermanyChileBeerWineBeerWine(cases)(cases)(cases)(cases)75030 060152412453018 24304512 361560 6 48075 0 60 Refer to Table 20.4. Before specialization, Germany produces 45 cases of beer and 30 cases of wine, and Chile produces 18 cases of beer and 24 cases of wine. After specialization, the increase in beer production is
A. 0 cases of beer. B. 2 cases of beer. C. 8 cases of beer. D. 12 cases of beer.