According to the Phillips curve, a more expansionary macro-policy that causes inflation to be greater will:
a. place downward pressure on prices.
b. reduce unemployment.
c. reduce output.
d. reduce the natural rate of unemployment.
b
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In his Liquidity Preference Framework, Keynes assumed that money has a zero rate of return; thus
A) when interest rates rise, the expected return on money falls relative to the expected return on bonds, causing the demand for money to fall. B) when interest rates rise, the expected return on money falls relative to the expected return on bonds, causing the demand for money to rise. C) when interest rates fall, the expected return on money falls relative to the expected return on bonds, causing the demand for money to fall. D) when interest rates fall, the expected return on money falls relative to the expected return on bonds, causing the demand for money to rise.
If the present value of an individual's savings account is $100,000, what is its future value in 5 years if the account earns an annual interest rate of 2 percent?
A) $112,125.40 B) $109,582.03 C) $110,250.00 D) $110,408.08
If workers become less productive, which of the following would happen in the labor market?
a. Labor supply would decrease. b. Labor supply would increase. c. Labor demand would decrease and labor supply would increase. d. Labor demand would increase and so would labor supply. e. Labor demand would decrease.
Which of the following would we expect to have the highest poverty rate?
A. White households headed by males. B. Elderly white households. C. White households headed by females. D. African-American households headed by females.