"The long-run Phillips curve is vertical at the expected rate of inflation." Is the previous statement correct or incorrect?
What will be an ideal response?
The statement is incorrect because the long-run Phillips curve is vertical at the natural unemployment rate.
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Refer to Figure 4-1. If the market price is $3.00, what is Kendra's consumer surplus?
A) $6.50 B) $5.50 C) $2.50 D) $0.50
Which of the following countries became the newest members of the European Union in 2007?
A) Bulgaria and Romania B) Greece and Sweden C) Albania and Cyprus D) None of the above
The difference between a business plan and a scenario plan is:
a. A scenario plan is a one-to-three year planning document, but the business plan is a 10-to-20 year planning document. b. Really, there is no difference c. A scenario plan is like a capital budgeting plan. In short, it is for one scenario. But a business plan is for three to five years. d. A scenario plan is a long-term planning document (normally 10 to 20 years), and a business plan is a three-to-five year plan. e. None of the above.
If each unit of capital lasts an average of 25 years, then for an economy with a capital stock worth 5 times the annual GDP, approximately what percentage of output must be set aside to replace depreciation?
a) 5% b) 10% c) 20% d) 25% e) 30%