A policy change that changes the natural rate of unemployment changes
a. neither the long-run Phillips curve nor the long-run aggregate supply curve.
b. both the long-run Phillips curve and the long-run aggregate supply curve.
c. the long-run Phillips curve, but not the long-run aggregate supply curve.
d. the long-run aggregate supply curve, but not the long-run Phillips curve.
b
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Other things the same, if the Fed increases the quantity of money, the ________ because ________
A) nominal interest rate decreases; the supply of money curve shifts rightward B) nominal interest rate increases; the supply of money curve shifts rightward C) nominal interest rate does not change; only the real interest rate is effected D) nominal interest rate decreases; the supply of money curve shifts leftward E) nominal interest rate increases; the supply of money curve shifts leftward
Mel's House of Cars is an automobile dealership that sells both new and used cars. Two other dealerships located near Mel's pay their salespeople a straight salary - they receive no commission for each car they sell
Mel has decided to pay all of his salespeople a commission on all car sales. Which of the following is most likely to occur as a result of Mel's decision? A) Mel will experience a principal-agent problem. Some of his salespeople will tend to shirk because they will not be paid if they sell no cars, regardless of how hard they work. B) Mel will be able to hire some of the most productive salespeople who work for the other two dealerships. C) Mel risks violation of federal law that regulates firms' compensation policies. D) Mel will have difficulty finding salespeople. Research by labor economists has found that most employees prefer the security of a salary to the uncertainty of being paid based on how much revenue they generate for their employers.
Which of the following is a characteristic of socialism?
a. Rejection of central planning. b. Government ownership of all factors of production. c. Government ownership of most of the factors of production. d. Private ownership of all factors of production.
When investors become irrationally optimistic that an asset's price will continue to rise, it causes a financial bubble to:
A. start to inflate. B. be on the verge of bursting. C. burst. D. become doubted by most serious investors.