Suppose the Fed increased the growth rate of the money supply. Which of the following would be higher in the long run?
a. both the natural rate of unemployment and the inflation rate
b. the natural rate of unemployment, but not the inflation rate
c. the inflation rate, but not the natural rate of unemployment
d. neither the natural unemployment rate nor the inflation rate
c
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In a progressive tax system, ________
A) the average tax rate equals the marginal tax rate B) the marginal tax rate exceeds the average tax rate C) the average tax rate exceeds the marginal tax rate D) the average tax rate is equal for all taxpayers
The conditions for unaligned retailer and manufacturer incentives include
a. customers are familiar with the product before they shop for it b. retailers have no opportunity to educate consumers c. manufacturers are more efficient at education consumers d. demand for the product is increased with some consumer education
Which of the following statements is not one of the factors leading to the Russian economy transitioning toward capitalism?
A. allowing private ownership of factors of production B. ability for individuals to earn profits C. allowing supply and demand to set higher prices for basic consumer goods D. restrictive regulations and licensing requirements for businesses
Answer the following questions true (T) or false (F)
1. One factor which brought on the recession of 2007-2009 was the financial crisis in 2008. 2. New classical macroeconomic theory emphasizes the role of "sticky" prices in the economy. 3. Monetarists believe that the quantity of money should be increased at an increasing rate.