According to the natural rate hypothesis, in the short run an increase in the inflation rate brings
A) an increase in the natural unemployment rate.
B) an increase in the unemployment rate.
C) no change in the unemployment rate.
D) a decrease in the unemployment rate.
E) a decrease in the natural unemployment rate.
D
You might also like to view...
Refer to Table 11.1. What is the value of the marginal propensity to consume?
A) 0.15 B) 0.6 C) 0.75 D) 0.9
Which of the following resulted from Fed policy that first kept short-term interest rates extremely low during 2002-2004, and then pushed them up substantially during 2005-2006?
a. a reduction in housing prices because variable rate mortgages were unattractive throughout this period b. upward pressure on housing prices when the interest rates were low, but downward pressure on the price of housing as the interest rates rose c. lower default rates on adjustable rate mortgages as the interest rates peaked during 2006 d. downward pressure on housing prices when the interest rates were low, but upward pressure on the price of housing as the interest rates rose
Suppose someone told you that the chain-weighted price index for GDP in a country was 135. Why does this fact not convey much information to you?
What will be an ideal response?
A firm that can sell as much as it can produce at the market price is likely operating in:
A. a perfectly competitive market. B. a monopoly C. a monopolistically competitive market. D. an oligopoly