As the average annual inflation rate ________, the volatility of inflation tends to ________
A) decreases; increase
B) increases; increase
C) increases; remain stable
D) decreases; remain stable
B
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What is structural unemployment?
What will be an ideal response?
Refer to Table 15-4. Suppose the following table illustrates the values of real and potential GDP and the price level if the Fed does not vote to change their current policy to be more contractionary or expansionary
If the Fed wants to keep real GDP at its potential level in 2017, should the Fed use a contractionary or expansionary policy? How should it conduct open market operations to achieve its goal?
When quantity supplied is not very responsive to a change in price, supply is
A) elastic. B) unit-elastic. C) inelastic. D) income sensitive.
If Jerry's demand for leisure increases as the wage increases:
A. the income effect dominates the substitution effect. B. the substitution effect dominates the income effect. C. the income effect is completely offset by the substitution effect. D. there is insufficient information.