Under adaptive expectations, the short-term effect of an unanticipated shift to a more expansionary macroeconomic policy will be a
a. temporary reduction in the unemployment rate.
b. permanent reduction in the unemployment rate.
c. temporary reduction in the inflation rate.
d. permanent reduction in the inflation rate.
A
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An increase in aggregate demand will shift the short-run Phillips curve to the right.
Answer the following statement true (T) or false (F)
Which of the following best explains the closing gap between rural and urban mortality rates?
(a) Relatively higher incomes in urban areas (b) Relatively lower prices in urban areas (c) Medical advancements, health education, and public health and sanitation involvement (d) All of the above.
Straight line pay for performance
a. Eliminates the managers' incentives to lie about the budget b. Breaks the link between meeting a particular budget goal and compensation c. Rewards the manager for doing more and punishes them for doing less d. All of the above
A 10 percent increase in buyers' incomes results in a 5 percent drop in the quantity of hot dogs demanded. In this range, the income elasticity of demand for hot dogs is
a. 0.5 b. 2.0 c. 5.0 d. -2.0 e. -0.5