Typical estimates of the sacrifice ratio suggest that a one-percentage-point reduction in the inflation rate requires
a. a sacrifice of 5 percent of annual output.
b. a sacrifice of 5 percent of government spending.
c. an increase in the unemployment rate of 5 percentage points.
d. a 5 percent increase in the government budget deficit.
a
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When auto workers go on strike at many of the "Big 3" plants around the United States, the supply of American automobiles
A) increases, which is represented by a leftward shift in the supply curve. B) increases, which is represented by a rightward shift in the supply curve. C) decreases, which is represented by a rightward shift in the supply curve. D) decreases, which is represented by a leftward shift in the supply curve. E) remains the same; only quantity supplied changes.
The actual division of the burden of a tax between buyers and sellers in a market is called
A) tax parity. B) tax incidence. C) tax bearer. D) tax liability.
Open market operations directly change the rate of interest at which banks can borrow funds from the Fed
a. True b. False Indicate whether the statement is true or false
Countries with a relatively high stock of skilled labor will have a comparative advantage in producing goods that require relatively larger quantities of skilled labor
a. True b. False Indicate whether the statement is true or false