When inflation has been persistent, as was the case in the United States during the 1970s, low unemployment rates will likely be associated with
A) low natural rates of unemployment.
B) high natural rates of unemployment.
C) low but stable rates of inflation.
D) high but stable rates of inflation.
E) increases in the inflation rate.
E
You might also like to view...
When we solve the firm's dual production problem (i.e., maximize output subject to a cost constraint) by the method of Lagrange multipliers, the optimal value of the Lagrange multiplier equals the:
A) marginal product per unit cost of each variable input. B) marginal product of capital. C) marginal product of labor. D) marginal cost of production.
Which of the following statements about the percent of the population aged 25 years and above completing high school in 2000 is most accurate?
a. African Americans graduate at a rate about 10 percentage points less than whites, and Hispanics graduate at a rate about 30 percentage points less than whites. b. African Americans and Hispanics graduate at the same rate that whites do. c. Hispanics graduate at the same rate as whites, but African Americans graduate at much lower rates. d. Hispanic and black males graduate at the same rate as white males, but Hispanic and black females graduate at much lower rates than white females.
When the legal reserve requirement is lowered,
a. the money multiplier increases, and the amount of excess reserves increases in the banking system b. the money multiplier decreases, and the amount of excess reserves increases in the banking system c. the money multiplier decreases, and the amount of excess reserves decreases in the banking system d. the money multiplier increases, and the amount of excess reserves decreases in the banking system e. there is no change in either the money multiplier or the amount of excess reserves in the banking system
The Heckscher-Ohlin Theorem predicts
A) who benefits and who loses from trade. B) which factors are abundant. C) the income distribution effects of trade. D) which goods will be exported.