There tends to be ________ relationship between the growth rate of the money supply and the inflation rate
A) an inverse
B) a direct
C) no significant
D) a negative
B
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Suppose we are modeling a "closed" economy. The only way its government can obtain more goods and services than it can claim with net tax revenues is for
A) exports to exceed imports. B) imports to exceed exports. C) investment to exceed saving. D) saving to exceed investment.
In which of the following situations are wages the least likely to be sticky?
A) Unionized workers are in the second year of a three-year labor contract. B) A firm that pays efficiency wages to its employees is experiencing an economic recession. C) A firm has an implicit contract with its employees regarding wages during recessions and expansions. D) A firm hires hourly workers based on changes in the supply and demand for its products.
The demand for labor curve depicts the inverse relationship between the wage rate and the revenue generated by each unit of labor
a. True b. False Indicate whether the statement is true or false
Based on the simplified trade relations assumed in the textbook, if two countries specialize according to comparative advantage, and trade according to mutually satisfactory terms of trade, then each country's consumption-possibilities frontier will shift inward relative to autarky
Indicate whether the statement is true or false