A theory is a(n)
a. answer to a problem.
b. way to explain the result an economist wants.
c. tool to help determine the answer to a problem.
d. a graph.
c. tool to help determine the answer to a problem.
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Given the accelerationist Phillips curve ?? = - 0.3 (U - 6 ) + ?, suppose that inflation in the preceding period was 3 percent, unemployment is 6 percent, and there is a price shock of 2 percent. The current inflation rate is ________
A) 3 percent B) 0.2 percent C) 5 percent D) 1 percent E) none of the above
Appendix: When using a multiplicative power function (Y = a X1b1X2b2X3b3) to represent an economic relationship, estimates of the parameters (a, and the b's) using linear regression analysis can be obtained by first applying a ____ transformation to convert the function to a linear relationship
a. semilogarithmic b. double-logarithmic c. reciprocal d. polynomial e. cubic
Public policy responses to monopolies:
A. aim to break up existing monopolies. B. prevent new monopolies from forming. C. ease the effect of monopoly power on consumers. D. All of these statements are true.
Given that frozen yogurt and ice cream are substitutes, a shift in preferences in favor of yogurt would be predicted to do all of the following EXCEPT
A) raise the equilibrium price of frozen yogurt. B) increase the quantity supplied of frozen yogurt. C) increase the supply of ice cream. D) increase the demand for frozen yogurt.