One explanation economists offer to explain why a decline in the unemployment rate can raise the rate of inflation rates is that
a. firms will be put in a position of competing more intensely for scarce resources
b. people will pay higher prices because competition among the suppliers—the firms—intensifies
c. workers will focus more directly on protecting their jobs
d. firms will refuse to shift higher labor costs along to consumers for fear of losing their markets
e. more workers will drop out of the labor market
A
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The price of a new textbook increased by 35 percent and the price of a used textbook increased by 30 percent. What happened to the relative price of the new textbook?
A. It decreased by 5 percent. B. It increased by 5 percent. C. It increased, but we can't tell by how much without more information. D. It decreased, but we can't tell by how much without more information.
A fall in the relative prices of a country’s exports tends to increase that country’s net exports, and, thereby, to raise its real GDP.
Answer the following statement true (T) or false (F)
The Fed is a nonprofit institution whose function is to serve the overall welfare of the public.
Answer the following statement true (T) or false (F)
If a government policy change harms a monopolist, the government could
A) tax those who get additional gains and compensate the monopolist, thereby making the change a Pareto improvement. B) increase the general tax rate and compensate the monopolist, thereby making the change a Pareto improvement. C) do nothing, because the change is a Pareto improvement. D) It is not possible to mitigate the harm to a monopolist.