When actual inflation is greater than expected inflation
A) the natural rate of unemployment rises, according to Phillips-curve analysis.
B) cyclical unemployment rises, according to Phillips-curve analysis.
C) there are transfers from borrowers to lenders.
D) there are transfers from lenders to borrowers.
D
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Miniville is an isolated town located on the southern shore of Lake Condescending, a very large lake. The western edge of Miniville is adjacent to impassable mountains and there are no towns or businesses for many miles to the east. The 300 residents of Miniville are evenly distributed along 3 miles of shoreline on the lake, east of the mountains. Lake Shore Drive, the only street in town, provides access to Miniville's homes and businesses. All residents live between the lake and the street; businesses locate on the other side of the street. Lake Shore Drive is 3 miles long, and the points labeled A, B, and C are 1, 2, and 3 miles from the western end of Lake Shore Drive, respectively. All residents of Miniville shop at the store located closest to their homes. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q218g1.jpg" alt="" style="vertical-align: 0.0px;" height="117" width="538" />If one store is located at A and the other store is located at C:
A. 100 people will certainly shop at each store, but where the other 100 will shop is indeterminant.
B. 100 people will shop at the store at A, and 200 people will shop at the store at C.
C. 200 people will shop at the store at A, and 100 people will shop at the store at C.
D. 150 people will shop at each store.
When the government uses a private subsidy in a market with an external benefit, to reach the efficient quantity of production, the subsidy must be equal to the marginal
A) social benefit. B) cost of production. C) private benefit. D) external benefit. E) external cost.
If the MPC of an economy is 0.90 and the economy has a horizontal aggregate supply curve, then an increase in investment spending of $50 million will increase total income by
A. $50 million. B. more than $50 million but less than $500 million. C. $500 million. D. more than $500 million.
The M1 money supply is composed of:
A. checkable deposits and currency. B. savings deposits and time deposits. C. money market mutual funds held by businesses. D. money market mutual funds held by individuals.