In Milton Friedman and Edmund Phelps' expectations-augmented Phillips curve, ________
A) unemployment will, in the long run, reach the natural rate
B) in the long run, expected inflation will reach the NAIRU
C) inflation is positively related to the unemployment gap
D) all of the above
E) none of the above
A
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Which of the following is the best example of money used as a medium of exchange?
A. Prices of products in a store in Mexico are marked in terms of U.S. dollars. B. A farmer stores $100 dollar bills in a strong box under the floor in a barn. C. A plumber unclogs a drain for a carpenter, who repairs broken steps for the plumber. D. In a prisoner of war camp cigarettes are traded for socks, candy and/or food, even by nonsmokers.
"According to the neoclassical growth theory, national incentives to save, invest, accumulate human capital, and develop new technology influence the country's growth rate of real GDP." Comment on the accuracy of the previous statement
What will be an ideal response?
The price of a Treasury bond futures contract is set
A) by the federal government. B) by the Chicago Board of Trade. C) by the Federal Reserve. D) as a result of bidding and offering by market participants.
The current account surplus is not
A) the trade balance. B) the excess of national savings over investment. C) private saving less government deficit. D) output less taxes and trade deficit.