The U.S. economic data for the last 50 years indicates that
A) there is an inverse relationship between unemployment rate and inflation rate.
B) there is a direct relationship between unemployment rate and inflation rate.
C) during recessions the unemployment rate was always twice as high as the inflation rate.
D) there has been no long-run relationship between unemployment and inflation rates.
D
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To increase gas mileage, automobile manufacturers make cars small and light. Large cars absorb more of the impact of an accident than small cars but yield lower gas mileage
These facts suggest that a positive relationship exists between safety and gas mileage. Indicate whether the statement is true or false
How much would the real rate of interest be if the nominal interest rate were 12 percent and the expected rate of inflation were 7 percent?
What will be an ideal response?
One reason why producers have an incentive to organize in favor of protection is because
A) producer gains are spread across so many firms that no one gets a large share of the benefits. B) producer gains are relatively concentrated. C) there is no real cost to the economy. D) producer gains outweigh consumer losses.
If a price ceiling is set above the equilibrium price,
A. there will be a shortage. B. quantity demanded will equal quantity supplied. C. there will be a surplus. D. demand will be less than supply.