In the expectations-augmented Phillips curve, ? = ?e - 3(u - 0.05). When ? = 0.03 and ?e = 0.06, the unemployment rate is
A) 0.04.
B) 0.05.
C) 0.06.
D) 0.07.
C
You might also like to view...
Suppose that there is an increase in expected future disposable income and simultaneously an increase in the expected profitability of investment
As a result, the equilibrium real interest rate ________ and the equilibrium quantity of loanable funds ________. A) rises; decreases B) falls; might increase, decrease, or not change C) rises; might increase, decrease, or not change D) rises; increases E) falls; increases
Which of the following could decrease the demand for yen in the foreign exchange market?
a. a higher inflation rate in Japan b. higher interest rates in Japan c. lower prices in the U.S. d. a depreciation of the dollar e. an appreciation of other currencies
If a country's saving rises, then either its investment or its net capital outflow rises (or both)
a. True b. False Indicate whether the statement is true or false
Which of the following industries is not an example of monopolistic competition?
A. Notebook computers. B. Airlines. C. Toys. D. Pizza delivery.