Both the long-run and the short-run Phillips curves shift if
A) the expected inflation rate changes.
B) the expected unemployment rate changes.
C) the natural unemployment rate changes.
D) expected real GDP changes.
E) the actual inflation rate changes.
C
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Which of the following is NOT true when there are large economies of scale such that one firm can produce at a lower average cost than can be achieved by multiple firms?
A) This situation produces a natural monopoly. B) Proportional increases in output yield proportionally small increases in total cost. C) The long-run average cost curve of the firm will increase at a low level of output. D) There will only be one firm in this industry.
The relationship between the price level and net exports is:
A. negative. B. positive. C. perfectly correlated. D. uncorrelated.
Which of the following was not a major area addressed by the Dodd-Frank Bill (i.e., Wall Street Reform and Consumer Protection Act of 2010)
a. Ensuring that investment banks and others had "skin in the game" by restricting their ability to securitize 100% of their mortgage-backed loans. b. Reducing systemic threats to the U.S. financial system. c. Solving the "too big to fail" problem in the U.S. financial system. d. Improving credit rating agency performance and accountability. e. All of the above.
When the current yield and the coupon rate are equal, the bond is:
A. purchased at a price that equals the face value. B. a zero-coupon bond. C. purchased at a price that exceeds its face value. D. purchased at a discount.