If policymakers are not aggressive about keeping inflation close to the target rate, the slope of the monetary policy reaction curve would be:
A. horizontal.
B. steep.
C. negative.
D. relatively flat.
Answer: D
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In years when teenagers become a greater percentage of the labor force,
A) the natural rate of unemployment falls. B) the natural rate of unemployment rises. C) the inflation rate rises. D) the inflation rate falls.
Utility is the set of numerical values that
A) yields an absolute level of pleasure from a bundle of goods. B) reflects the relative ranking of various bundles of goods. C) describes how much more a consumer prefers one bundle to another. D) yields a cardinal ranking of bundles.
A nation's standard of living: a. will increase substantially over time even for a small increase in the growth rate. b. will increase by the same amount as the increase in the growth rate
c. will decrease substantially over time even for a small increase in the growth rate. d. will increase less than the amount of the increase in the growth rate.
The marginal propensity to consume varies with income levels but is independent of consumer expectations
a. True b. False Indicate whether the statement is true or false