If the expected inflation rate is unchanged, a fall in the natural rate of unemployment would
A. shift the short-run Phillips curve to the left.
B. not shift the short-run Phillips curve.
C. shift the short-run Phillips curve to the right.
D. shift the short-run Phillips curve to the left and shift the long-run Phillips curve to the right.
Answer: A
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Which of the following best describes the "wealth effect"?
A) When the price level falls, the real value of household wealth falls. B) When the price level falls, the real value of household wealth rises. C) When the price level falls, the nominal value of household wealth rises. D) When the price level falls, the nominal value of household wealth falls.
For the period 1915 to 2005, educational improvements in the U.S. labor force contributed what percentage of real per-capita GDP growth?
A) 0.01 B) 15 C) 317 D) 34
Three hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the formula TC = 1,000Qmill + (Qmill)2, where Qmill indicates the mills annual production in thousands of tons. The marginal external cost of a mill's production (in dollars) is given by the formula MEC = 200 + 2Qmill. Finally, annual market demand (in thousands of tons) is given by the formula Qd = 200,000 - 100P. What is the competitive price?
A. $1,400 B. $920 C. $7,000 D. $1995
Which of the following Nobel laureates became known for the study of asymmetric information?
A) Michael Spence B) Ronald Coase C) George Ackerlof D) Gary Becker