If the central bank keeps the money supply growth rate constant, but people raise their inflation expectations by 1 percentage point, then the short-run Phillips curve shifts
a. right and the unemployment rate rises.
b. right and the unemployment rate falls.
c. left and the unemployment rate rises.
d. left and the unemployment rate falls.
a
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Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.1 shows how much of each good Jesse and April can paint in one hour. Jesse's opportunity cost of painting one kite is painting
A) 1/12 of a snowboard. B) 1/8 of a snowboard. C) 1/3 of a snowboard. D) 3 snowboards.
A decrease in the government budget deficit decreases the ________ loanable funds and an increase in the government budget surplus increases the ________ loanable funds
A) demand for; demand for B) demand for; supply of C) supply of; demand for D) supply of; supply of
If a life insurance company does NOT require a medical exam of its policyholders, it is most likely that the company
A) charges above-average premiums. B) charges below-average premiums. C) charges no premiums. D) has only very healthy policyholders.
The table above gives the total cost information for a perfectly competitive firm. What is the profit-maximizing quantity of output?
a. 4 b. 6 c. 3 d. 5