If actual inflation is greater than expected inflation
A) the Phillips curve is a vertical line. B) real wages fall.
C) real wages rise. D) the unemployment rate rises.
B
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If the Fed wants to close a recessionary gap, should it buy or sell government securities? Why?
What will be an ideal response?
If a French company exports $2 million of machinery to Italy and French tourists spend $2 million at Italian beaches, the Italian current account balance ________, and the Italian financial account balance ________
A) rises; rises B) rises; is unchanged C) is unchanged; is unchanged D) is unchanged; rises
Which of the following does NOT help explain why pay should rise with age?
A. Many jobs require a learning curve that is often years long. B. Workers tend to build firm-specific knowledge over time. C. Reasoning abilities, mental speed, and memory improve as people age. D. Experience improves performance.
Which of the following factors tends to foster the development of an oligopoly?
A. Economies of scale B. Foreign competition C. Antitrust legislation D. Low barriers to entry