If the economy is at potential output, expected inflation
A. equals the natural rate of unemployment.
B. is less than actual inflation.
C. equals actual inflation.
D. is greater than actual inflation.
Answer: C
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In the last few decades there has been little progress in lowering the barriers to international trade
Indicate whether the statement is true or false
The actions of buyers and sellers naturally move markets toward equilibrium
a. True b. False Indicate whether the statement is true or false
Ceteris paribus, an increase in the U.S. demand for Greek goods in Figure 36.1 will
A. Result in a movement from M to R on the supply curve for dollars. B. Result in a movement from M to N on the demand curve for dollars. C. Make U.S. goods more expensive to Greek residents. D. Increase the dollar price of euros above $2 = 1 euro.
Suppose Amy has 100 efficiency units of labor, Bill has 50 efficiency units of labor, and Chris has 20 efficiency units of labor. Which of the following is true?
A. A firm will never hire Chris, regardless of wages. B. A firm will always hire Amy over Chris, regardless of wages. C. A firm will never hire Bill, regardless of wages. D. A firm will hire Amy if her wage is at least twice that of Bill's and at least five times that of Chris's. E. A firm will hire Amy if her wage is at most double that of Bill's and at most five times that of Chris's.