Which of the following claims is consistent with the views of mainstream economists?
a. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will temporarily fall.
b. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will temporarily rise.
c. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will permanently fall.
d. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will permanently rise.
a
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Jay was just drafted by a professional baseball team, and was offered a record-breaking contract because of his potential. This is an example of
a. a human capital differential. b. a compensating differential. c. signaling theory. d. the superstar phenomenon.
Holding money to meet unplanned expenditures and emergencies is known as
A. precautionary demand. B. transactions demand. C. aggregate demand. D. speculative demand.
According to the new classical macroeconomists, each of the following statements is true EXCEPT:
A) Disinflation will be harder to bring about because of the time-inconsistency problem. B) Policymakers are tempted to deviate from the preannounced policy once the public changes its expectations. C) Feedback rules are preferred to discretionary rules. D) Disinflation will be painless if the restrictive policies announced by the government are credible.
At any price below the equilibrium price, the: a. demand is greater than supply
b. supply is greater than demand. c. quantity demanded is greater than quantity supplied. d. quantity supplied is greater than quantity demanded.