The Fed usually prefers the inflation rate to hover around ________

A) 6% B) 10% C) 2% D) 5%


C

Economics

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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.

A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease

Economics

New Keynesian economics assumes rational expectations and

A. flexible prices, but sticky wages. B. flexible prices and wages. C. sticky prices and wages. D. flexible wages, but sticky prices.

Economics

Refer to the above table. Brook's utility schedule shows

A. initially decreasing marginal utility and then increasing marginal utility. B. increasing marginal utility throughout her entire schedule. C. diminishing marginal utility throughout her entire schedule. D. initially increasing marginal utility and then decreasing marginal utility.

Economics

According to the above figure, the profit-maximizing output for this monopolist is found directly below the letter

A. P. B. N. C. M. D. R.

Economics