According to the modern expectational Phillips curve, unemployment will temporarily fall below the natural rate of unemployment when
a. any inflation is present.
b. inflation turns out to be lower than what people expected.
c. inflation turns out to be higher than what people expected.
d. inflation turns out to be equal to what people expected.
C
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A movement along a demand curve from one price-quantity combination to another is called a:
A. change in demand. B. change in quantity supplied. C. shift in the demand curve. D. change in quantity demanded.
Explain how the currency drain ratio affects the size of the money multiplier. In your explanation, suppose that in one round of the money creation process a bank gains $1 million in new deposits and reserves
Further suppose that the desired reserve ratio is 10 percent and the currency drain ratio is 50 percent.
_____ is embodied in the notion of a social welfare function
a. Progressivism b. Socialism c. Utilitarianism d. Social insurance
A country has a comparative advantage when the opportunity cost of producing a good in terms of:
a. the monetary value of other forgone goods is lower than that of other nations. b. the monetary value of other forgone goods is greater than that of other nations. c. forgone output of other goods is higher than that of other nations. d. forgone output of other goods is lower than that of other nations. e. forgone output of other goods is equal to that of other nations.