Under adaptive expectations, the short-term effect of an unanticipated shift to a more expansionary macroeconomic policy will be a:
a. temporary reduction in the unemployment rate.
b. permanent reduction in the unemployment rate.
c. temporary reduction in the inflation rate.
d. permanent reduction in the inflation rate.
a
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Use the following table to answer the question below.Alexandra's Production Possibilities ScheduleNatalia's Production Possibilities ScheduleNumber of Scarfs Knitted per dayNumber of Sweaters Knitted per dayNumber of Scarfs Knitted per hourNumber of Sweaters Knitted per hour040433236242916112080What is the minimum a scarf would be traded for in this example?
A. 1/3 of a sweater B. 2 sweaters C. 1/2 of a sweater D. 3 sweaters
In the above table, when x increases from 4 units to 6 units, y changes by ________ units
A) 2 B) -2 C) 6 D) -6
It is often observed that the prices charged for gasoline by the various gas stations in a particular city tend to move together very closely. Is this an example of tacit collusion that should be prosecuted in the United States? Why or why not?
What will be an ideal response?
The price of gold is often volatile because:
A. supply is relatively inelastic so changes in demand have a large effect on price. B. supply is relatively elastic so changes in demand have a large effect on price. C. demand is relatively elastic so changes in supply have a large effect on price. D. demand is relatively inelastic so changes in supply have a large effect on price.