What is the natural rate hypothesis?
What will be an ideal response?
The natural rate hypothesis is the proposition that when the inflation rate changes, the unemployment rate changes temporarily. Eventually, however, the unemployment rate returns to the natural unemployment rate.
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If a firm can adjust its employment of all inputs, then it is
a. experiencing economies of scale. b. in the long run. c. off its expansion path. d. limited only by the capacity of its fixed capital.
The U.S. dollar will appreciate if inflation rises from 3 percent to 7 percent in the United States
Indicate whether the statement is true or false
Explain why it is more difficult to determine the incidence of the corporate income tax than it is to determine the incidence of the tax on gasoline
What will be an ideal response?
Suppose that Verizon Wireless has hired you as a consultant to determine what price it should set for calling services. Suppose that an individual's inverse demand for wireless services in the greater Boston area is estimated to be P = 100 ? 33Q and the marginal cost of providing wireless services to the area is $1 per minute. What is the optimal two-part price that you would suggest to Verizon?
A. Charge a fixed fee = $3 and a usage fee of $0.33 per minute. B. Charge a fixed fee = $3 and a usage fee of $3 per minute. C. Charge a fixed fee = $148.50 and a usage fee of $1 per minute. D. Charge a fixed fee = $95.5 and a usage fee of $1 per minute.