The expected inflation rate is equal to the actual inflation rate. According to the (Friedman) natural rate theory, the economy is
A) in a recessionary gap.
B) in an inflationary gap.
C) at a point on the short-run Phillips curve, but not on the long-run Phillips curve.
D) biased toward producing a higher percentage of services than goods.
E) producing Natural Real GDP.
E
You might also like to view...
In the figure above, if an excise tax is imposed that generates an efficient allocation of resources, then the amount of output will be
A) zero. B) 50 units. C) 150 units. D) 250 units.
By the accelerator hypothesis, if a firm's actual sales jump in one period to a higher maintained level, that firm's replacement investment
A) also jumps in one period to a higher maintained level. B) gradually drifts upward to a higher maintained level. C) jumps upward and then falls back to zero. D) jumps upward and then falls back part of the way.
Which of the following is most influenced by changes in the discount rate?
a. the interest rate paid on savings b. the commercial loan rate c. the installment loan rate d. the mortgage loan rate
Oligopolies in the United States rarely engage in explicit collusion because
a. it leads to lower profits b. firms are very wary of each other in this type of market c. they may have different dominant strategies d. it is illegal e. dominant strategies may not exist