In the expectations-augmented Phillips curve, ? = ?e - 3(u - 0.05). When ? = 0.03 and ?e = 0.06, the unemployment rate is
A. 0.04.
B. 0.05.
C. 0.06.
D. 0.07.
Answer: C
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A) negatively; negatively B) negatively; positively C) positively; negatively D) positively; positively
The demand for luxurious goods are usually unaffected by an increase in income
a. True b. False Indicate whether the statement is true or false
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a. True b. False Indicate whether the statement is true or false
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A. consumption is zero. B. income equals consumption plus spending. C. consumption equals income. D. consumption equals spending.