If a central bank attempts to lower the inflation rate but the public doesn't believe the inflation rate will fall as far as the central bank says, then in the short run unemployment
a. rises. As inflation expectations adjust, the short-run Phillips curve shifts right.
b. rises. As inflation expectations adjust, the short-run Phillips curve shifts left.
c. falls. As inflation expectations adjust, the short-run Phillips curve shifts right.
d. falls. As inflation expectations adjust, the short-run Phillips curve shifts left.
b
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If high incomes inspire more saving than low incomes ________
A) the average propensity to consume falls as income rises B) the marginal propensity to consume rises as income rises C) autonomous consumption falls as income rises D) the average propensity to consume rises as wealth rises
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. Given the scenario described, if the market price of hammers decreased from $17 to $12:
A. producer participation in the market would decrease. B. total producer surplus would remain unchanged. C. producer participation in the market would not be affected. D. producer participation in the market would increase.
The "currency" of the IMF is
A. the IMF Dollar. B. the Special Drawing Right. C. gold. D. the International Currency Unit.
In the United States from 1949 to 2010, the vast majority of economic growth has been a result of the contribution from
A) capital. B) labor. C) total factor productivity. D) Capital, labor, and total factor productivity have contributed about equally to economic growth.