If consumer confidence rises and inflation expectations remain unchanged, what happens to inflation and unemployment? Defend your answer
Inflation rises and unemployment falls. The increase in consumer confidence shifts aggregate demand to the right making prices and output rise. The increase in the price level makes inflation higher than otherwise. The increase in output reduces the unemployment rate.
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A perfectly price discriminating monopolist's profit is ________ the profit of a monopolist who charges the same price to all of its customers.
A. the same as B. higher than C. sometimes less than and sometimes greater than. D. less than
On the risk side of the analysis, your team reviews the following data from the risk assessment process. Interpret each of these quantitative findings about pesticide risk, by stating precisely what the numerical value(s) mean or imply in each case. Be specific. (i) Pesticide W: Reference Dose (RfD) = 0.005 (ii) Pesticide X: threshold level of 0 for infants and children (iii) Pesticide Y: carcinogenic risk of 0.0075 percent (iv) Pesticide Z: a dose (D)-response (R) function modeled as R = 0 for all D < 0.6, R = – 0.3 + 0.5D for all D ? 0.6.
Suppose you are part of an economic analysis team charged with recommending a policy response to pesticide risks. Your team decides to use risk-benefit analysis as its risk management strategy.
Improvements in the productivity of labor will tend to: a. increase the supply of labor
b. increase the demand for labor. c. decrease the supply of labor. d. decrease the demand for labor.
Keynesians tend to agree that during a depression:
A. governments should not do anything because anything they do will likely make the situation worse. B. decreasing government spending is likely to improve economic conditions. C. increasing taxes is likely to improve economic conditions. D. increasing government spending is likely to improve economic conditions.