If the nominal interest rate is 8 percent and the real interest rate is 5.5 percent, then the inflation rate is

Using the figure above, suppose with no trade Liz and Joe each produce at point A on their respective PPFs. Then, Joe suggests that they specialize and trade. He would produce only salads and Liz would produce only smoothies

Then, Joe says, he would buy 16 smoothies from Liz at a price of 1.5 salads per smoothie. Liz should A) not accept Joe's offer since she would lose 2 smoothies and 2 salads. B) accept Joe's offer, as she will be as well off as with no trade. C) accept Joe's offer since she will gain 4 smoothies and 4 salads. D) accept Joe's offer since she will gain 4 salads. E) not accept Joe's offer, as the price he offers is too low for her to gain from trade.

Since 1950

A) the average length of expansions in the United States have become longer as compared to before 1950. B) the average length of expansions in the United States are about the same length as compared to before 1950. C) the average length of expansions in the United States have become shorter as compared to before 1950. D) economic expansions in the United States have been so short that expansions barely exist.