If the actual unemployment rate is below the natural rate of unemployment, then the actual inflation rate must exceed the expected inflation rate, and the economy will be operating along the short-run Phillips curve
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following market types has only a few competing firms?
A) perfect competition B) monopolistic competition C) oligopoly D) monopoly E) perfect competition and monopolistic competition
The cost-output elasticity is used to measure:
A) economies of scope. B) economies of scale. C) the curvature in the fixed cost curve. D) steepness of the production function.
The major purpose of the Federal Reserve buying government securities in open market operations is to:
a. Increase interest rates b. Raise money for government spending c. Allow banks to increase their lending d. Reduce the excess reserves of banks
If the price of Diet Pepsi rises, what happens to the price of Diet Coke?
A. It will rise. B. It will fall. C. It will remain the same. D. There is no way of telling what will happen to the price of Diet Coke.