Suppose that the inflation rate has been 3 percent per year for several years, and the unemployment rate has been stable at 5 percent. Unanticipated changes in government policy cause the inflation rate to increase to 6 percent
In the short run, we would expect the unemployment rate to
A) increase, but the exact amount cannot be known for sure.
B) decrease.
C) increase to 10 percent.
D) remain constant.
B
Economics
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By the permanent-income hypothesis, the long-run marginal propensity to consume is
A) j. B) k. C) kj. D) k - j. E) k/j
Economics
When marginal cost is below average total cost:
a. total cost is falling. b. total cost is rising. c. average total cost is falling. d. average fixed cost is rising. e. total variable cost is falling.
Economics