What is the difference between deflation and disinflation?
What will be an ideal response?
Deflation refers to a decrease in the price level, or equivalently, negative inflation. Disinflation is a decrease in the inflation rate.
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Classicals argue that an adverse supply shock would
A) raise neither the natural rate of unemployment nor the actual rate of unemployment. B) raise the actual rate of unemployment, but not the natural rate of unemployment. C) raise the natural rate of unemployment, but not the actual rate of unemployment. D) raise both the natural rate of unemployment and the actual rate of unemployment.
Economists depict distribution of income by drawing a Lorenz curve above the diagonal
Indicate whether the statement is true or false
Use the figure below to answer the following question.
What is the amount of deadweight loss after the government imposes the excise tax on the market?
A. $44 B. $8 C. $4 D. $36
Refer to the data provided in Table 17.6 below to answer the following question(s). The table shows the relationship between income and utility for Isabel.Table 17.6 IncomeTotal Utility $00 $40,00020 $80,00050$120,00090$160,000150Refer to Table 17.6. Suppose Isabel has a 25% chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Isabel does not become disabled, she will earn her usual salary of $160,000. Isabel has the opportunity to purchase disability insurance for $40,000 which will pay her her full salary in the event she becomes disabled. Would Isabel purchase such a policy?
A. yes B. no C. maybe D. indeterminate from the given information