If workers and firms ignore inflation or form their inflation expectations adaptively, expansionary monetary policy will lower unemployment permanently
Indicate whether the statement is true or false
FALSE
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Historically, the United States has experienced
A) no changes in the unemployment rate since World War II. B) periods of both increases and decreases in the unemployment rate since World War II. C) continuous increases in the unemployment rate since World War II. D) continuous decreases in the unemployment rate since World War II.
A zero pollution level is not achievable because
A) corporations would lobby against it. B) it implies no production and no consumption. C) it implies an output level larger than that from a competitive market equilibrium. D) consumption would be larger than production.
The world’s nations meet through the World Trade Organization to negotiate how they can reduce barriers to trade and to ___________ trade.
a. discourage b. prevent c. encourage d. limit
Refer to the information provided in Figure 12.4 below to answer the question(s) that follow.
Figure 12.4There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, the likely change in capital flows in sectors X and Y will eventually________ in industry X and ________ in industry Y.
A. increase the price to P1; increase the price to P0 B. decrease the price to P0; decrease the price to P1 C. increase the price to P1; decrease the price to P1 D. decrease the price to P0; increase the price to P0