The short-run tradeoff between inflation and unemployment implies that, in the short run,
a. a decrease in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate.
b. an increase in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate.
c. policymakers are able to reduce the inflation rate and, at the same time, reduce the unemployment rate.
d. policymakers can influence the inflation rate, but not the unemployment rate.
a
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The buyer of a good has less information than the seller of the good. This is a case of
A. externality information. B. free ridership. C. asymmetric information. D. biased information. E. a public good not being a private good.
Which of the following is true?
a. When the government undertakes an activity, we can be assured that all voters will gain. b. If a government activity is favored by most citizens, it must be productive. c. If most voters oppose a government activity, it must be counterproductive. d. When voters pay in proportion to benefits received, all voters will gain if the government activity is productive.
When a country that imports shoes imposes a tariff on shoes, buyers of shoes in that country become worse off
a. True b. False Indicate whether the statement is true or false
The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000.
When the firm uses 120 units of labor, how much output does it produce?
A. 7,500 units B. 7,000 units C. 70 units D. 8,400 units E. 9,200 units