The best definition of inflation is
a. a temporary increase in prices.
b. an increase in the price of one important commodity such as food.
c. a persistent increase in the general level of prices as measured by a price index.
d. an increase in the purchasing power of the dollar.
C
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If we compare the Canadian natural unemployment rate to the U.S. natural unemployment rate, we find that for most years since 1980
A) the Canadian rate is higher, possibly the result of higher unemployment benefits in the United States for most of those years. B) the U.S. rate is higher, possibly the result of greater job search within a larger country. C) they are essentially the same because we have a lot in common. D) the Canadian rate is higher, possibly the result of higher unemployment benefits in Canada for most of those years. E) The U.S. rate is higher, possibly the result of more structural change occurring in the United States.
The LM curve is the combinations of
A) the output gap and the real interest rate for which the money market is in equilibrium. B) the inflation rate and nominal interest rate for which the money market is in equilibrium. C) the inflation rate and real interest rate for which the money market is in equilibrium. D) the inflation rate and real interest rate for which the goods market is in equilibrium.
The critical value of F4,? at the 5% significance level is
A) 3.84 B) 2.37 C) 1.94 D) Cannot be calculated because in practice you will not have infinite number of observations
Marginal physical product can tell a producer
A. at what point to stop adding inputs to the production process. B. how much profit will be made at each level of production. C. how much the last input added to the total amount of revenue. D. how much the last input added to the total amount of production.