If the level of unemployment is above the natural rate of unemployment, it would be expected that:
a. the short-run Phillips curve will shift leftward, as inflationary expectations adjust.
b. the inflation rate will increase
c. the short-run Phillips curve will shift rightward, as inflationary expectations adjust.
d. both b. and c.
a. the short-run Phillips curve will shift leftward, as inflationary expectations adjust.
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According to the law of demand, a demand curve
A. Has a negative slope. B. Has a positive slope. C. Exceeds the economy's ability to produce. D. Is a horizontal or flat line.
To be useful, a model must
A. have assumptions that have been verified by empirical testing. B. predict accurately all of the time. C. predict more accurately than other models that have been developed. D. predict the behavior of every individual.
A decrease in the unemployment rate may be represented as a movement from a point on the production possibilities frontier to a point outside the frontier
Indicate whether the statement is true or false
The ratio of bank's equity to its total assets is called
A) capital requirements. B) leverage. C) assets requirement. D) risk.