The short-run Phillips curve presents a tradeoff because a
A) lower unemployment rate can be achieved at the cost of a higher inflation rate.
B) higher inflation leads to a higher nominal interest rate.
C) lower unemployment rate can be achieved at the cost of a lower inflation rate.
D) higher price level leads to a lower real GDP.
E) higher unemployment rate can be achieved at the cost of a higher inflation rate.
A
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Boyd Manufacturing operates in a perfectly competitive market. The firm recently purchased a new structure with an expected rate of return of 18 percent
If the market rate of interest is 10 percent, was the firm's decision to purchase the structure a wise one? Explain.
Which of the following would be considered a "leisure" activity by economists?
A. Mopping the floor at McDonald's for minimum wage B. Mopping your kitchen floor C. Folding sweaters while working at the Gap D. None of these activities would be considered leisure.
A bond with a $90,000 face value sells at a $10,000 discount one year prior to maturity. What is the nominal interest rate paid by the bond?
a. 8.0%. b. 8.9%. c. 11.1%. d. 12.5%.
A legal organization of a firm where the business is owned by one individual who makes the business decisions, receives all the profits, and is legally responsible for the debts of the firm is a(n)
A. corporation. B. entrepreneur. C. partnership. D. proprietorship.