If people eventually adjust their inflation expectations so that in the long run actual and expected inflation are the same, then policymakers
a. can not exploit a tradeoff between inflation and unemployment in either the short or long run.
b. can exploit a tradeoff between inflation and unemployment in the short run but not in the long run.
c. can exploit a tradeoff between inflation and unemployment in both the short run and the long run.
d. can exploit a tradeoff between inflation and unemployment in the long run, but not the short run.
b
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If the real interest rate is less than the equilibrium real interest rate, there is a ________ of loanable funds, and ________
A) shortage; savers increase their saving supply to restore the equilibrium B) shortage; borrowers have an easy time finding the funds they want C) surplus; some borrowers cannot find the funds they want D) shortage; some borrowers cannot find the funds they want E) surplus; borrowers have an easy time finding the funds they want
The additional incentive that the purchaser of a Treasury security requires to buy a long-term security rather than a short-term security is called the
A) risk premium. B) term premium. C) tax premium. D) market premium.
Paul's Plumbing is a small business that employs 12 people. Which of the following is the best example of an implicit cost incurred by this firm?
A. The tax payments on property owned by the firm. B. The wages paid to the 12 employees. C. The half of the payroll taxes on the wages of the 12 employees paid by the employers, but not the half paid by the employees. D. The accounting services provided free of charge to the firm by Paul's wife, who is an accountant.
The linear regression equation, Y = a + bX, was estimated. The following computer printout was obtained: 
Given the above information, the exact level of significance of b? is
A. 0.171 percent. B. 2.921 percent. C. 1.71 percent. D. 2.66 percent. E. 1 percent.