The long-run Phillips curve shows an inverse relation between inflation and unemployment
a. true
b. false
Ans: b. false
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Refer to Figure 21-25. Suppose the price of good X is $10, the price of good Y is $5, and the consumer’s income is $210. Then the consumer’s optimal choice is represented by a point on which curve?
a. I4
b. I2
c. I3
d. I1
Saving exceeds domestic investment in Japan, which generates a financial account deficit in Japan's balance of payments
Indicate whether the statement is true or false
The fact that business cycles are recurrent but not periodic means that
A) business cycles occur at predictable intervals, but do not last a predetermined length of time. B) the business cycle's standard contraction—trough—expansion—peak pattern has been observed to occur over and over again, but not at predictable intervals. C) business cycles occur at predictable intervals, but do not all follow a standard contraction—trough—expansion—peak pattern. D) business cycles last a predetermined length of time, but do not all follow a standard contraction—trough—expansion—peak pattern.
If a $30 increase in U.S. exports to France causes a $150 increase in U.S. national income, the value of the marginal propensity to consume in the U.S. is
a. 5 b. 0.20 c. 3 d. 0.80 e. not discernible given the information provided