Suppose the money growth rate is 3 percent, velocity is constant, and real GDP is growing at 2 percent. What is the inflation rate?
A) 1 percent
B) 5 percent
C) 3 percent
D) 6 percent
A
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Suppose that the total labor force is 100 individuals with 10 unemployed. The unemployment rate is ________. Now assume that 10 people drop out of the labor force and that 10 remain unemployed. The new unemployment rate is ________
A) 9 percent; 10 percent B) 10 percent; 9 percent C) 10 percent; 11 percent D) 11 percent; 10 percent
Refer to the accompanying figure. Moving from point B to point A, the opportunity cost of 25 more salads is:
A. 5 pizzas. B. 20 pizzas. C. 10 pizzas. D. 15 pizzas.
Command systems in the Soviet Union and pre-reform China failed primarily because of:
A. the failure to accumulate and use capital. B. greater resource scarcity than in market systems. C. the failure to specialize in production. D. coordination and incentive problems.
What happens in a duopoly if both firms try to act as the Stackelberg leader?
What will be an ideal response?