When inflation expectations changed during the 1967-1971 period, this change led to
A) the short-run Phillips curve shifting upward.
B) the short-run and the long-run Phillips curve both shifting upward.
C) an increase in the natural unemployment rate.
D) the long-run Phillips curve shifting leftward.
E) the long-run Phillips curve shifting rightward.
A
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Assume the retiree had a third option: receive a lump sum of $750,000 five years from now. If the interest rate is 4 percent, approximately how much is the future $750,000 to be received in 5 years worth today?
A) $586,445 B) $616,445 C) $630,000 D) $646,555 Scenario 12.1: Jennifer has decided to give up her pack-a-day smoking habit and invest the money she would have spent on cigarettes in a retirement account. At $6.00 a pack, Jennifer is currently spending $2,190 per year on cigarettes. Jennifer is 25 years old and plans to retire in 35 years, at age 60. She has chosen a retirement account that will earn a long-term average return of 5 percent per year. Jennifer is currently earning $40,000 annually. Assume that the average annual inflation rate will be 5 percent per year, that the cost of cigarettes will increase with inflation, and that Jennifer's income will also rise with the inflation rate.
Consumers in a country buy only two goods, pens and CDs. The prices and quantities purchased by urban households are in the table above. If 2011 is the reference base year, the cost of the CPI market basket in the base year is
A) $3,400. B) $3,408. C) $3,580. D) $3,508. E) $3,500.
The ratio of U.S. government spending to GDP reached its peak during:
a. World War I. b. World War II. c. the Great Depression. d. the real estate crisis. e. the bursting of the stock market bubble.
Demand and supply can also be used to explain how economic events will cause ___________ in prices, wages, and rates of return.
a. changes b. freezes c. barriers d. locking