Opponents of inflation targets say that:
a. such targets encourage workers to expect a low and stable inflation rate and hold down demands for wage increases.
b. the Fed pays less attention to jobs and economic growth when it sets such targets
c. such targets encourage firms to plan on a low and stable inflation rate and hold down price increases.
d. such targets encourage investors to plan on a low and stable inflation rate and hold down demands for interest rate increases.
e. the Fed pays more attention to jobs and economic growth when it sets such targets.
b
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In the above figure, a decrease in the expected profit will result in a movement from point E to
A) point F. B) point G. C) point H. D) point I.
Pure monopoly: a. is characterized by a single supplier
b. is a market structure in which no close substitute products are available. c. exists when entry and survival of potential competitors is extremely unlikely. d. is characterized by all of the above.
A risk-neutral person would be equally happy with $1 or a 50% chance of winning $2.
a. true b. false
When output increases by 1%, the unemployment rate ________ in the short run because as output increases, the size of the labor force increases.
A. tends to rise by 1% B. does not tend to fall by 1% C. tends to fall by 1% D. tends to rise by less than 1%