If the unemployment rate rises above the natural rate of unemployment in the short run, the inflation rate will rise.
Answer the following statement true (T) or false (F)
False
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The demand curve for the output of a perfectly competitive firm is
a. perfectly inelastic. b. perfectly elastic. c. a rectangular hyperbola with an elasticity equal to 1. d. identical in shape to the market demand curve.
According to the modern view of the Phillips curve, expansionary macroeconomic policy that leads to inflation will reduce unemployment
a. only if people underestimate the inflationary side effects of the policy. b. only if people overestimate the inflationary side effects of the policy. c. if people accurately anticipate the inflationary side effects of the policy. d. only if monetary policy provides the macroeconomic stimulus.
Which of the following is included in Germany's GDP?
i. BMWs produced in a German-owned factory in South Carolina ii. the value of the stocks sold on the German stock exchange, the Frankfurt Stock Exchange iii. china produced by the English-owned Wedgewood Company at a factory in Berlin, Germany A) i and iii B) ii only C) iii only D) i and ii E) None of the above answers is correct.
Factor markets are different from product markets in an important way because
a. equilibrium is the exception, and not the rule, in factor markets. b. the demand for a factor of production is a derived demand. c. the demand for a factor of production is likely to be upward sloping, in violation of the law of demand. d. All of the above are correct.