In the short run, an unanticipated increase in the inflation rate would
A. unambiguously improve the misery index.
B. increase the unemployment rate.
C. decrease the unemployment rate.
D. lower the natural rate of unemployment.
Answer: C
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If grades are to be a successful signal to potential employers of a student's qualities, then higher grades must be
A) easier for high-productivity students to earn than for low-productivity students to earn. B) easier for low-productivity students to earn than for high-productivity students to earn. C) easy for employers to check. D) used for all future promotions within the firm. E) often referred to in the hiring process.
Under perfect competition, firms are relatively ignorant of the actions of their competitors
a. True b. False Indicate whether the statement is true or false
Assume the central bank decides to pursue contractionary monetary policy. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real goods market with aggregate demand shifting to the right. b. Start the analysis in the real credit market with demand for real credit shifting to the left. c. Start the analysis in the real credit market with demand for real credit shifting to the right. d. Start the analysis in the real credit market with supply of real credit shifting to the left. e. Start the analysis in the real credit market with supply of real credit shifting to the right.
The principle of voluntary exchange is the concept that a voluntary exchange between two people makes both people better off.
Answer the following statement true (T) or false (F)