If an increase in inflation is expected, which of the following events is the least likely to occur?
a. There will be an upward movement along the long-run Phillips curve.
b. Nominal GDP will increase.
c. Nominal wage rates will increase at the same rate as expected inflation.
d. A worker's reservation wage will rise at the same rate as expected inflation.
e. Unemployment rate will increase.
e
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According to the book, which air bag adds the most safety to passengers?
A) The second. B) The fourth. C) The third. D) The first.
According to the rational expectations theory
A. anticipation of inflation can cause deflation. B. anticipation of inflation actually causes inflation. C. inflation rates are unrelated to unemployment rates. D. the economic understanding of workers and managers is incomplete, making it unlikely that their inflationary expectations will influence the economy.
Many developing countries face a balance of payments constraint because:
A. they fail to implement exchange rate policy correctly. B. they hold too few international reserves. C. they hold too many international reserves. D. the IMF forces them to adopt policies that are counterproductive.
If a product is perceived by consumers as homogeneous, which of the following strategies will work to induce brand loyalty?
A. Frequent buyer rebate programs B. Intensive advertising campaign C. Price wars with competitors D. None of the answers are correct.