When the actual rate of inflation is less than the expected rate:
A. the unemployment rate will temporarily rise.
B. firms will increase their output to recoup their falling profits.
C. the unemployment rate will temporarily fall.
D. firms will experience rising profits and thus increase their employment.
A. the unemployment rate will temporarily rise.
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The standard IS curve is adjusted in new Keynesian theory to account for ________
A) the forward-looking behavior of households and firms B) the difference between real and nominal variables C) changes in GDP, or Gross Domestic Product D) the impact of a rising national debt
Most policy makers agree that in the long run, changes in the money supply influence: a. the price level and inflation
b. the real interest rate and aggregate demand. c. the planned investment expenditure. d. the exchange rate. e. the potential GDP and unemployment.
Which of the following is likely to have the most price inelastic demand?
a. tablet computers b. leather boots c. lightbulbs d. optional textbooks
The Wagner Act
A) permitted unions to engage in collective bargaining. B) permitted states to pass right-to-work laws. C) restricted activities of heads of unions that were not beneficial to union members. D) mandates compulsory arbitration in some key industries.