Suppose that the inflation rate has been 3 percent per year for several years, and the unemployment rate has been stable at 5 percent. Unanticipated changes in government policy cause the inflation rate to increase to 6 percent
In the short run, we would expect the unemployment rate to
A) increase, but the exact amount cannot be known for sure.
B) decrease.
C) increase to 10 percent.
D) remain constant.
B
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Refer to the table below. If Sweet Grams is a perfectly competitive firm and the market price $1.75 per unit, what is the profit-maximizing quantity for Sweet Grams to produce at Plant 2?
Sweet Grams makes graham cracker snack packages. Sweet Grams is a multi-plant firm with two production facilities. The above table summarizes the total marginal cost of production at various output levels in the separate plants. Assume Sweet Grams is a perfectly competitive firm.
A) 32,000
B) 36,000
C) 32,500
D) 27,000
Compared to the no-trade situation, if the United States imports video games,
a. the price of video games will decline in the domestic market. b. domestic video game producers will be able to charge higher prices. c. domestic video game producers will expand both output and employment. d. U.S. consumers will be harmed.
Deflation began in the year _____.
Refer to the information provided in Figure 5.2 below to answer the question(s) that follow.
?Figure 5.2Refer to Figure 5.2. If the price of a hamburger decreases from $10 to $6, the price elasticity of demand equals ________. Use the midpoint formula.
A. -0.5 B. -2.0 C. -20 D. -200