If the expected inflation rate is unchanged, a rise in the natural rate of unemployment would
A. not shift either the short-run or long-run Phillips curves.
B. shift both the short-run and long-run Phillips curves to the left.
C. shift both the short-run and long-run Phillips curves to the right.
D. shift the short-run Phillips curve to the left and shift the long-run Phillips curve to the right.
Answer: C
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The monetary policy instrument the Federal Reserve chooses to use is the
A) federal funds rate. B) monetary base. C) fixed exchange rate. D) discount rate. E) flexible exchange rate.
The branch of macroeconomics concerned with changes in the natural real GDP is the theory of
A) business cycles. B) economic growth. C) GDP gaps. D) unemployment.
A defining characteristic of an oligopoly is:
A. barriers to entry prevent newcomers to such an industry. B. easy entry and exit prevent long-run profits from being possible. C. firms in the industry know they are competing with a few large firms with market power. D. all firms sell a standardized product.
A rational criminal model assumes
A. criminals commit crimes because they have more legal opportunities. B. criminals will commit fewer crimes if the severity of punishment rises. C. criminals will commit more crimes if the likelihood of getting caught rises. D. smart people commit crime.