For this question, assume that the Phillips curve equation is represented by the following: ?t - ?t-1 = (m + z) - ?ut. Which of the following will not cause an increase in the natural rate of unemployment?
A) a reduction in m
B) a reduction in z
C) an increase in ?
D) an increase in the expected rate of inflation
E) all of the above
D
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Name two actions that a government could take if it wants to implement an expansionary fiscal policy
What will be an ideal response?
When the economy is in macro equilibrium,
a. the sum of savings plus investment must equal the sum of imports plus exports. b. the sum of savings plus imports plus taxes must equal the sum of investment plus government purchases plus exports. c. the sum of savings plus government purchases must equal exports minus imports. d. the government's budget must be in balance.
Who from among the following would be counted as unemployed?
A. A person who is willing to work but has not looked for a job in two months.
B. A person with a part-time job who wants and is looking for a full-time job.
C. A person who is willing to work and has looked for a job in the last week.
D. All of these people would be counted as unemployed.
If the value that consumers place on the 100th unit of chocolate is $5, and the value of the resources used to produce that 100th unit is $2, to achieve an efficient allocation of resources
a. a $3 externality associated with chocolate production must be generated b. a $3 externality associated with chocolate production must be eliminated c. less resources should be allocated to chocolate production d. more chocolate should be produced e. less chocolate should be produced