Refer to the diagram. Assume that the natural rate of unemployment is 5 percent and that the economy is initially operating at point c, where the expected and actual rates of inflation are each 4 percent. If the actual rate of inflation unexpectedly rises from 4 percent to 6 percent, the economy will:
A. move from a to b and eventually to c.
B. move directly from c to b.
C. remain at a.
D. move from c to d and eventually to a.
D. move from c to d and eventually to a.
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Historically, the U.S. government seems to have ________
A) run budget surpluses as often as budget deficits B) generally spent less than what it collected in taxes each year C) had difficulty running budget surpluses D) not needed to borrow to finance wars E) none of the above
Macroeconomics:
A. is concerned with the expansion of a small business into a large corporation. B. is narrower in scope than microeconomics. C. analyzes mergers and acquisitions between firms. D. is concerned with the expansion and contraction of the overall economy.
For the nation's capital stock to grow, net investment must be positive.
Answer the following statement true (T) or false (F)
The more elastic demand is for a taxed good, the smaller the excess burden associated with the tax.
Answer the following statement true (T) or false (F)