In the quantity equation framework for understanding the determinants of long-run inflation, a depreciation of the exchange rate ________ velocity, putting ________ pressure on inflation
A) raises, upward
B) raises, downward
C) lowers, upward
D) lowers, downward
A
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An example of a consumption tax is
A) an income tax. B) transfer payments. C) the Social Security tax. D) a sales tax.
Unemployment caused by an imbalance between the skills possessed by workers and the skills demanded in labor markets is known as
a. structural unemployment. b. imbalance unemployment. c. frictional unemployment. d. cyclical unemployment.
Suppose you are producing where MC = AVC = $3 and this is loss minimizing. If market reports predict that the price of your product will reach a long-run equilibrium level that is $4 higher than it is today, you should
a. increase output in advance of the expected price increase b. remain in business c. shut down d. remain in business only if your most efficient production level has an average total cost less than or equal to $7 e. shut down until the price increases, then get back in business
The Federal Open Market Committee is a. the group at the Federal Reserve that sets monetary policy. b. in charge of tax collection
c. the group that sets the amount of government spending. d. the group that reviews income assistance programs.