Refer to Figure 28-2. Suppose the economy is at point C in the figure above. If workers adjust their expectations of inflation, which of the following will be true?
A) The natural rate of unemployment is 6%.
B) Workers and firms expect inflation to be 1%.
C) The short-run Phillips curve will shift to the left.
D) The short-run Phillips curve will shift to the right.
E) The economy will move from C to A.
C
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After much success during the 1970s, the OPEC cartel saw the price of oil and the revenues of its members decline during the 1980s due, in part, to
a. the low elasticity of demand for oil in the short run b. the large number of buyers from each member nation c. surging demand for oil in the early 1980s d. publicity concerning the prices negotiated with each member e. the greater long-run elasticity of demand for oil
When considering whether to migrate to a particular location, one calculates the present value of living in that location. How does one best calculate the present value of living in a location?
A. Determine the starting wage one will earn in the location. B. Sum up the annual incomes one will earn in the location. C. Subtract one's wage in the new location from the starting wage in the current location. D. Sum the annual discounted incomes one will earn in the location. E. Subtract one's wage in the current location from the starting wage in the new location.
Based on the information in the table, what quantity of reserves would the Federal Reserve have had to inject into the economy in 1932 to prevent the money supply from falling, given that the public increased the amount of currency it held and that banks increased the reserve-deposit ratio? Currency held by public(in billions)Reserve-deposit ratioBank reserves (in billions)Money supply (in billions)December 1931$4.590.095$3.11$37.3December 1932$4.820.109$3.18$34.0
A. $0.30 billion B. $0.66 billion C. $3.54 billion D. $0.89 billion
When the interest rate is high, planned investment is ________ so output is ________.
A. high; low B. low; low C. low; high D. high; high