Which of the following statements is correct?
a. In the short run, unemployment and inflation are positively related. In the long run they are largely unrelated problems.
b. Inflation and unemployment are positively related in the short run and in the long run.
c. In the short run, unemployment and inflation are negatively related. In the long run they are largely unrelated problems.
d. Inflation and unemployment are negatively related in the short run and in the long run.
c
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A perfectly horizontal demand curve has
A) zero elasticity. B) some positive finite elasticity. C) negative elasticity. D) perfect elasticity.
If a country devotes its resources to acquiring more physical capital it will:
A. not face the investment trade-off. B. have more GDP per capita in the future. C. have more current consumption. D. not have less overall GDP in the future.
Lulu did not vote in the last election. When Ari asked her why, she said, “None of the candidates thinks like I do, and there are so many voters that what I want and my vote don’t matter. I’m not wasting my time playing a game and throwing away my vote.” What would a public choice economist say about Lulu?
a. She lacks basic logic. b. She is a traitor. c. She does not understand economics. d. She is rationally ignorant.
Considering the concept of compounding, explain why in determining the future value of a $100 investment at 5 percent annual interest, you can't simply multiply $100 by (1.10) and get the correct answer.
What will be an ideal response?