When the Phillips curve was viewed as a structural relationship, it was believed that the Fed could
A) permanently reduce the unemployment rate if it were willing to accept an increase in the inflation rate.
B) permanently reduce the inflation rate as it permanently reduced the unemployment rate.
C) permanently reduce the unemployment rate if it were willing to increase the real interest rate.
D) permanently reduce the inflation rate if it were willing to decrease the real interest rate.
A
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Suppose there are only two goods: guns and roses. In Los Angeles, the absolute price of roses is 50 dollars per dozen. If the relative price of roses in terms of guns is 1 guns per dozen roses, then the absolute price of guns is
a. 5 dollars per gun. b. 2 cents per gun. c. 50 dollars per gun. d. 50 cents per gun.
The key idea behind price discrimination is to convert consumer surplus into
A) a barrier to entry. B) economic profit. C) deadweight loss. D) monopoly power. E) total cost.
What is a black market?
What will be an ideal response?
A nominal variable, such as the inflation rate or the money supply, which ties down the price level to achieve price stability is called ________ anchor
A) a nominal B) a real C) an operating D) an intermediate