Based on the data in this table,
U ? ?
period 1 6 1 4
period 2 8 0 3.2
period 3 8 2 4.4
If the natural rate of unemployment is steady at 7 percent, and, in period four, there is no price shock and unemployment is 8 percent, then the inflation rate in period 4 will be ________ percent.
A) 4.4
B) 3.6
C) 3.4
D) 1.6
E) none of the above
B
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On the vertical axis, the production possibilities frontier shows ________; on the horizontal axis, the production possibilities frontier shows ________
A) the quantity of a good; the number of workers employed to produce the good B) the quantity of a good; the price of the good C) the quantity of a good; a weighted average of resources used to produce the good D) the quantity of one good; the quantity of another good
Answer the following statement(s) true (T) or false (F)
1. Price controls are always implemented by the federal government. 2. The controlled rents for existing occupants are generally well below market rental rates. 3. The main argument for minimum wage is that it allows low-income workers to live better. 4. Price ceilings on gasoline lead to surpluses of this product.
Real income can be determined by:
A. dividing the price level by nominal income. B. deflating nominal income for inflation. C. inflating nominal income for inflation. D. dividing the annual rate of inflation by the number "70."
Every point on the long-run average cost curve is
A) also a minimum point on a short-run average cost curve. B) on a short-run average total cost curve. C) on a short-run average variable cost curve. D) on a short-run marginal cost curve.