The right rate of inflation for the economy-the rate at which no one really pays attention to it-is a rate between:
A. ?5 and zero percent.
B. 2 and 5 percent.
C. zero and 2 percent.
D. ?2 and 2 percent.
Answer: C
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Assuming that the rational expectations hypothesis is NOT in effect, in the short run an expansionary monetary policy should
A) generate stagflation. B) shift the aggregate supply function. C) increase real Gross Domestic Product (GDP) and the price level. D) increase the rate of unemployment.
Which of the following can a firm use to defend a successful product's brand name?
A) The firm can apply for a trademark to ban other firms from using the product's name. B) The firm can increase the amount it spends on advertising for the product. C) The firm can obtain a patent on the brand name. D) The firm can attempt to copyright the brand name.
Aggregate supply is defined as
a. how much the economy can produce at zero unemployment. b. an amount of output the economy will produce at full employment. c. the relationship between the expenditures schedule and the leakages schedule. d. the relationship between the price level and the quantity of real GDP supplied.
Refer to the below graph. What will shift D2 to D1?
Use the following graph to answer question about the labor resource market faced by producers of good X:
A. A decrease in the price of a substitute input (if the output effect > substitution effect)
B. An increase in the price of a substitute input (if the substitution effect > output effect)
C. An increase in the price of a substitute input (if the output effect > substitution effect)
D. A decrease in the price of a complementary resource