If expectations are rational,
A. a predictable change in inflation can make the expected inflation rate deviate from the actual rate.
B. unemployment can exceed the full-employment rate even in the long run.
C. the difference between the actual inflation rate and the expected inflation rate must be a purely random number.
D. the inflation rate cannot be reduced without a period of high unemployment because the Phillips curve is downward sloping.
Answer: C
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In the table above, what inflation rate belongs in space A?
A) 17.0 percent B) 6.8 percent C) 8.3 percent D) -4.0 percent
After the U.S. introduces of a tariff in the market for phones, the price of phones in the U.S. will
a. decrease b. increase c. remain the same d. change in an indeterminate manner
The most common data for testing economic theories come from
a. carefully controlled and conducted laboratory experiments. b. computer models of economies. c. historical episodes of economic change. d. centrally planned economies.
If nominal Gross Domestic Product (GDP) in 2020 was $3,000 billion, and the price level index was 330 (2000 = 100), then real Gross Domestic Product (GDP) in terms of the price level in 2020 was about
A. $105 billion. B. $537 billion. C. $4,220 billion. D. $909 billion.