Suppose the unemployment rate in 2001 was 4.7, lower than the 5.4 percent unemployment rate that policymakers think is consistent with price level stability. Accepting the dictates of the Phillips curve, they would probably forecast for 2002
a. a higher rate of inflation
b. a lower rate of inflation
c. a higher rate of GDP growth
d. a recession
e. an economic stabilization at 4.7 percent unemployment
A
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American Idol is a popular television program where contestants compete to win a $1 million record deal. To determine the winner, fans either dial the number or send a text message indicating their favorite contestant
The contestant with the highest number of texts and phone calls wins. What is the scarce resource in this example? A) $1 million record deal B) television ratings C) phone calls and text messages D) fans
Assuming a horizontal long-run market supply curve, which of the following statements is (are) TRUE about competitive firms in the long run?
A) p = MC B) p = AC C) profit = 0 D) All of the above.