If people have adaptive expectations, the Phillips curve model implies that whenever the actual rate of inflation is higher than the expected rate of inflation:
a. unemployment will exceed its natural rate
b. unemployment will be less than its natural rate.
c. unemployment will increase.
d. unemployment will decrease.
b
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The maximum amount Jameson would be willing to pay for a cupcake, less the price he actually pays, is called
A) consumer surplus. B) producer surplus. C) cooperative surplus. D) deadweight loss.
If a worker can produce 20 units of output which can be sold for $4 per unit, what is the maximum wage that firm should pay to hire this worker?
A) It depends on what the going wage rate is in the labor market. B) $80 minus the firm's profit markup C) $80 D) There is insufficient information to answer the question.
The income that people earn in resource or factor markets is called:
a. national income. b. personal income. c. disposable personal income. d. transfer payments. e. net national product.
Suppose the tax rate on the first $10,000 of income is 0 percent; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent on the next $20,000; and 40 percent on income over $60,000. Family X has an income of $55,000. What is the tax liability of Family X?
A. $6,600 B. $16,500 C. $3,400 D. $7,500