Suppose that we compare shares of income earned by different U.S. groups by dividing all households into five groups. Which of the following statements about the income distribution in the United States is correct?
A. Shares of income remain roughly constant as we move from the lowest quintile to the highest quintile.
B. Shares of income decrease as we move from the lowest quintile to the highest quintile.
C. Shares of income increase as we move from the lowest quintile to the highest quintile.
D. None of these
Answer: C
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An initial leftward shift in labor demand often creates a cascading chain of events, amplifying the impact of the initial shock. This is known as the ________ effect
A) Veblen B) multiplier C) cluster D) rebound
If workers and firms raise their inflation expectations,
A) unemployment will fall. B) the short-run Phillips curve will be vertical. C) the short-run Phillips curve will shift upward. D) actual inflation will fall to match expected inflation.