If the monetary authorities persistently expand the money supply at a rapid rate, the probable result will be
a. inflation.
b. high nominal interest rates.
c. rapid growth of real GDP.
d. both a and b.
D
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According to ________, when real GDP is ________ percentage points greater than potential GDP, the unemployment rate is one percentage point ________ the natural unemployment rate
A) Okun's Law; four; below B) Keynes' Law; two; below C) Phillip's Law; four; above D) Say's Law; two; above E) Okun's Law; two; below
Assume a manager of a major league baseball team has a player that is the best pitcheron team the team. However, he decides to to have him play right field instead. It turns out that he is not the best right fielder on the team
How might this manager defend his decision?
Which of the following is an example of an externality that has been internalized?
A. Acid rain, originating in the United States, destroys Canadian forests. B. Robert Frost breathes the air that has been polluted by the emissions of a nearby steel plant. C. Erica Evans, a beekeeper, decides to keep more bees because her neighbor, an orchard owner, has agreed to compensate her for the bees' pollination of the orchard. D. Miguel Sanchez, a concert pianist, rehearses Beethoven's "Moonlight Sonata" and his neighbors enjoy the "free concert." E. all of the above
In the case study discussed in the chapter, the electronics firm was losing money by selling its calculators at a price that was below average cost
a. True b. False Indicate whether the statement is true or false