If workers and firms raise their inflation expectations
A) unemployment will fall.
B) the short-run Phillips curve will be vertical.
C) actual inflation will fall to match expected inflation.
D) the short-run Phillips curve will shift upward.
D
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The supply of money curve is
A) vertical because the quantity of money is fixed at any one moment. B) horizontal because interest rates are fixed at any one moment. C) horizontal because the Fed controls the quantity of money supplied. D) upward sloping, showing the influence of the interest rate. E) downward sloping, showing the negative influence of the interest rate.
The Coase theorem implies that an efficient solution is possible only if property rights are well-defined and transactions costs are low
a. True b. False Indicate whether the statement is true or false
In 2009, nominal GDP was $14,050 billion and M1 was $1,587 billion. Velocity was
A. 0.11. B. 8.85. C. 11.30. D. 14.25.
An agricultural price support is an example of a price ceiling
Indicate whether the statement is true or false