A permanent reduction in inflation would
a. permanently reduce the frequency of price changes and permanently lower unemployment.
b. permanently reduce the frequency of price changes and temporarily raise unemployment.
c. temporarily reduce the frequency of price changes and temporarily lower unemployment.
d. temporarily reduce the frequency of price changes and temporarily raise unemployment.
b
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Assume that goods X and Y are substitutes and are produced in perfectly competitive markets. All else constant, in the short run, a decrease in the supply of good X would cause:
A) an increase in the demand for good Y. B) a decrease in the demand for good Y. C) an increase in the supply of good Y. D) a decrease in supply of good Y.
Your firm is planning to hold an auction to sell its oil field. What type of auction should you suggest to your boss?
A. English auction B. Dutch auction C. Second-price, sealed-bid auction D. None of the statements is correct.
How costly are biases in the Consumer Price Index (CPI)?
What will be an ideal response?
Refer to the information provided in Figure 1.4 below to answer the question(s) that follow.
Figure 1.4Refer to Figure 1.4. Panel D shows a curve which has a slope that is
A. zero throughout. B. first negative and then positive. C. first positive and then negative. D. infinite throughout.