Studies in the 1980s and early 1990s showed that, in general, greater central bank independence
A) was associated with lower average inflation.
B) was associated with lower average inflation and higher average real GDP growth.
C) was associated with lower average inflation and higher unemployment.
D) was associated with higher average inflation and higher average real GDP growth
Ans: A) was associated with lower average inflation.
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In the above figure, the efficient quantity of milk is
A) 10 million gallons per day. B) 5 million gallons per day. C) zero gallons per day. D) None of the above because all of the quantities are efficient.
The natural rate of unemployment worsens if:
a. A nation's resource endowments expand. b. Labor force mobility worsens. c. Capital markets become more competitive. d. None of the above. e. Actually, the natural rate cannot worsen. That's why it's called "natural."