If expectations are rational, the difference between the actual inflation rate and the forecast for inflation is:
a. positive when inflation is increasing

b. negative when inflation is increasing.
c. random.
d. greater, the more accurately people anticipate the effects of government policy.

c

Economics

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Keynes was especially concerned with explaining the ________ level of output and employment during the ________

A) low; 1920s B) low; 1930s C) high; 1920s D) high; 1930s

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Suppose you are paid a wage of $50 per hour. if your marginal income tax rate is 20%, then for every additional hour you work, your tax wedge is

A) $10. B) $20. C) $25. D) $40.

Economics