If the nominal interest rate is 5 percent and the real interest rate is 2 percent, then the inflation rate is 3 percent
a. True
b. False
Indicate whether the statement is true or false
True
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The long-run equilibrium for a perfectly competitive firm occurs at the minimum point of the ________
A) total fixed cost curve B) average fixed cost curve C) average total cost curve D) marginal cost curve
The Jordanian government might consider devaluing its currency (the dinar)
a. if domestic inflation is high b. if Jordan has a large trade deficit c. if Jordan has achieved full employment d. if the dollar is appreciated e. if Jordan has a large trade surplus
A 10 percent increase in the cost of restaurant meals, which are a luxury, will most likely
a. increase the purchase of meals by 10 percent. b. increase the purchase of meals by less than 10 percent. c. decrease the purchase of meals by more than 10 percent. d. decrease the purchase of meals by less than 10 percent.
Efforts to reduce the unemployment rate are likely, in the short run, to lead to
A. a decrease in the inflation rate. B. an increase in the inflation rate. C. no change in the inflation rate. D. have no impact on unemployment.