According to the Taylor rule, the Federal Reserve raises the real interest rate as the output gap ________ or the inflation rate ________.
A. increases; decreases
B. decreases; increases
C. decreases; decreases
D. increases; increases
Answer: B
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According to your textbook, globalization
A) does not necessarily destroy local identity. B) makes economic systems work perfectly. C) eventually turns all economic losses into profits. D) makes "outsourcing" impossible to achieve.
In the indifference curve-budget line model of labor supply, the vertical intercept of the budget line represents
a. the worker's nonlabor income. b. the wage rate paid to the worker. c. the number of leisure hours enjoyed by the worker. d. the number of hours of labor that the worker supplies.
The replacement ratio measures
a) The number of people in work who could be made redundant without affecting the size of the economy b) The number of people in employment relative to those unemployed c) the benefits available relative to wages that could be earned d) The number of people voluntarily unemployed
Francis is hoping to buy a ticket to a sold-out concert. He finds online dealers offering tickets for a price more than double the original purchase price. This tells him that ______.
a. Demand has driven up the price. b. The supply of tickets has increased. c. The venue is larger than he thought. d. He can get the tickets elsewhere at a discount.