The short-run Phillips curve shows the relationship between the
A) inflation rate and the unemployment rate.
B) inflation rate and the nominal interest rate.
C) natural unemployment rate and the expected inflation rate.
D) natural unemployment rate and the real interest rate.
E) expected inflation rate and the unemployment rate.
A
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GDP is a measure of all of the following EXCEPT
A. the total value of expenditures. B. the overall level of economic activity. C. the total of production. D. overall welfare.
According to the Taylor rule, when real GDP is at its potential and inflation is at its target rate of 2 percent, the Fed should:
A. carefully lower the federal funds rate in an attempt to stimulate noninflationary real GDP growth. B. raise the federal funds rate in an attempt to eliminate the remaining inflation. C. lower the federal funds rate to lower borrowing costs for the federal government. D. keep the federal funds rate at 4 percent.
Assuming the United States is the "domestic" country, if the real exchange rate between the United States and Russia decreases from 28 to 23,
A) the prices of U.S. goods and services have increased by 22% relative to Russia. B) the prices of U.S. goods and services have decreased by 5% relative to Russia. C) the prices of U.S. goods and services have increased by 25.5% relative to Russia. D) the prices of U.S. goods and services have decreased by 18% relative to Russia.
How has the severity and duration of business cycles changed over time in the United States?
What will be an ideal response?