A movement up the Phillips curve will cause
A. A decrease in both unemployment and inflation.
B. A trade-off between unemployment and inflation.
C. An outcome known as stagflation.
D. An increase in both unemployment and inflation.
Answer: B
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John's utility of wealth curve is shown in the above figure. He currently has total wealth of $20,000. If there is a 50 percent chance that his $10,000 car will be stolen, what is the value of insurance against the theft?
A) $0 B) $5,000 C) $7,000 D) $13,000
Suppose an economics forecaster discovers that on days when the sunspot count is high stock market on the following day is bullish, that is stock market prices edge upwards
In addition, he also observes that on days with a low sunspot count the following day the stock market tends to be bearish, that is stock market prices tend to fall. The forecaster then concludes that there is a positive relationship between the sunspot count and stock market prices and proceeds to base his investment decisions on this premise. What kind of an error has this forecaster made?
The Japanese yen will appreciate against the dollar if
A) U.S. residents demand more Japanese goods. B) U.S. residents demand fewer Japanese goods. C) Japanese residents demand more U.S. goods. D) none of the above.
Which of the following represents an illegal control of prices?
A. Colluding B. Following the leader without explicit agreements to do so C. Following the price determined by an analysis of supply and demand D. Accepting a government mandated price without contesting it