In the United States during the late 1990s, the unemployment rate fell from previous years and the inflation rate was lower than in previous years. This set of events is best described by saying that the
A) economy moved to a lower point on its short-run Phillips curve but the short-run Phillips curve did not shift.
B) economy moved to a higher point on its short-run Phillips curve but the short-run Phillips curve did not shift.
C) long-run Phillips curve shifted rightward.
D) short-run Phillips curve shifted downward.
E) short-run Phillips curve shifted upward.
D
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What does it mean for a country to have an absolute advantage in producing a product?
What will be an ideal response?
The Taylor Rule specifies that the federal funds rate target should be equal to
A) 0.5 ( inflation rate) + 1.5 (GDP gap) + 1 B) 1.5 (inflation rate) + 0.5 (GDP gap) + 1. C) interest rate - expected inflation rate. D) equilibrium federal funds rate + inflation rate +1
Demand is said to be inelastic if a(n) ______.
a. 9 percent price increase causes a 11 percent increase in quantity demanded b. 5 percent price increase causes 6 percent reduction in quantity demanded c. 8 percent price increase causes an 8 percent reduction in quantity demanded d. 10 percent price increase causes a 2 percent reduction in quantity demanded
Which statement is true?
A. The United States has a larger national output than any other country in the world. B. We have had recessions about every three years since World War II. C. There were no recessions while Ronald Reagan was president. D. None of the statements are true.