Proponents of rational expectations theory argued that, in the most extreme case, if policymakers are credibly committed to reducing inflation and rational people understand that commitment and quickly lower their inflation expectations, the sacrifice ratio could be as small as
a. 0.
b. 1.
c. 4.
d. 5.
a
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To be considered well capitalized, a bank's leverage ratio must exceed
A) 10%. B) 8%. C) 5%. D) 3%.
Until Congress began to periodically raise benefit levels to adjust for inflation, the first recipients of Social Security checks:
A. lost value over time, because the payments were not adjusted for inflation. B. received a fixed amount that caused their real income to decline. C. grew poorer over time, because the payments were nominal amounts. D. All of these statements are true.
Espresso Yourself Coffee Shop hires workers in a competitive labor market to make coffee. The ingredients required to make each cup of coffee cost 50 cents. The coffee shop's hourly output of coffee varies with the number of workers hired, as shown in the table. Each cup of coffee sells for $2.00.Number ofworkersCoffee(cups/hour)00125245360470575 The dollar value to the coffee shop of hiring the fifth worker is ________ per hour.
A. $7.50 B. $5.00 C. $2.00 D. $1.50
If the U.S. price level decreases, then
A. the expenditure schedule slope will flatten. B. the expenditure schedule slope will become steeper. C. shift the expenditure schedule upward. D. shift the expenditure schedule downward.