In the figure above, the economy is at point A when the price level rises to 120. Money wage rates and other resource prices remain constant. Firms are willing to supply output equal to

Explain carefully the relationship between a confidence interval, a one-sided hypothesis test, and a two-sided hypothesis test. What is the unit of measurement of the t-statistic?

What will be an ideal response?

One theory of unemployment argues that the unemployment rate will rise when

a. people have accurate expectations regarding the inflation rate. b. unexpected inflation causes people to be "fooled" by high absolute wages. c. people mistakenly believe their wages have greater purchasing power. d. people overestimate the rate of inflation.