Along the short-run Phillips curve SRPC2 the natural unemployment rate is
A) 8 percent.
B) 3 percent.
C) 4 percent.
D) 6 percent.
E) an amount that can be determined from the figure but none of the above answers is correct.
C
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At its shutdown point, a perfectly competitive firm earns total revenue that
A) exceeds its total cost. B) generates a normal profit. C) just equals its total variable cost. D) exceeds its total variable cost.
Since capital gains are only taxed when an investor sells an asset and realizes the gain, a possible result is:
A) the locked-in effect B) double taxation C) an increase in capital losses D) limited liability
Rational expectations theory implies that the more completely the effects of policy makers are foreseen, the smaller their short run effects on real output and unemployment, and the greater their short run effects on the price level
a. True b. False Indicate whether the statement is true or false
The dollar is said to depreciate against the euro if
a. the exchange rate falls. Other things the same, it will cost fewer euros to buy U.S. goods. b. the exchange rate falls. Other things the same, it will cost more euros to buy U.S. goods. c. the exchange rate rises. Other things the same, it will cost fewer euros to buy U.S. goods. d. the exchange rate rises. Other things the same, it will cost more euros to buy U.S. goods.