If expected inflation rises but actual inflation remains the same, what happens to the unemployment rate? Defend your answer
Unemployment rises. The increase in expected inflation shifts the short-run Phillips curve to the right. This means that any inflation rate, the unemployment rate is higher.
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Studies have shown that children born into poverty do not suffer from lasting health problems
Indicate whether the statement is true or false
Mac can bake more cookies than Monica per hour. It must be true that
A) Monica has an absolute advantage in cookie baking.
B) Mac has an absolute advantage in baking cookies.
C) Mac has a comparative advantage in baking cookies.
D) Monica has a comparative advantage in baking cookies.
E) Mac cannot benefit by trade between the two of them.
If a bank's reserve ratio is increasing,
A. reserves must be increasing. B. the rate of change in deposits must exceed the rate of change in reserves. C. deposits must be decreasing. D. the rate of change in reserves must exceed the rate of change in deposits.
Monopolistically competitive industries are characterized by no barriers to entry.
Answer the following statement true (T) or false (F)