The inflation rate that is used to set the money wage rate and other money prices is the
A) actual inflation rate.
B) cost of living inflation rate.
C) natural inflation rate.
D) expected inflation rate.
E) wage inflation rate.
D
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Of the following, which has most likely contributed the most to the rapid rise in health care costs in the United States?
A) the cost of malpractice insurance B) the cost of malpractice lawsuit settlements C) the cost to treat uninsured patients D) slow growth in labor productivity in health care
Assuming that turkey, chicken, pork, and beef are substitutes, suppose that the price of turkey has fallen. This will, other things being equal
A) reduce demand for chicken, pork, and beef. B) leave demand for chicken, pork, and beef unchanged. C) increase demand for chicken, pork, and beef. D) increase quantity demanded of beef.
Empirical estimates of the price elasticity of demand [in Table 3.4] suggest that the demand for household consumption of alcoholic beverages is:
a. highly price elastic b. price inelastic c. unitarily elastic d. an inferior good e. none of the above
If the Fed wanted to decrease the money supply, one way to make an enormous impact would be to:
A. increase the reserve requirement, which would decrease the money multiplier. B. decrease the reserve requirement, which would decrease the money multiplier. C. increase the reserve requirement, which would increase the money multiplier. D. decrease the reserve requirement, which would increase the money multiplier.