A.W. Phillips' study of unemployment and inflation in the United Kingdom specifically looked at the empirical relationship between the unemployment rate and the
A) rate of change in prices.
B) rate of change in nominal wages.
C) rate of change in real wages.
D) level of nominal wages.
B
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If reserves in the banking system increase by $100, then checkable deposits will increase by $667 in the simple model of deposit creation when the required reserve ratio is
A) 0.01. B) 0.05. C) 0.15. D) 0.20.
Many rapidly developing countries in East Asia have pursued government policies, which encourage savings. According to the neoclassical growth model, if these policies stimulate savings but do not encourage technology growth, then these policies
a. will have no effect on the level of output. b. will increase output growth permanently. c. will increase output growth in the short-run, but not in the long-run. d. will have no effect on the growth of output in the short-run or the long-run. e. none of the above.
In order to achieve social efficiency, the size of an effluent tax should be based on:
a. the external cost created by the pollutant. b. people's willingness to pay for a cleaner environment. c. the expense of installing new "green" equipment. d. the number of free riders in the industry.
Aggregation is important because it allows macroeconomists to divide a whole into its individual components
a. True b. False