When the Phillips curve was viewed as a structural relationship, it was believed that the Fed could
A) permanently reduce the unemployment rate if it were willing to accept an increase in the inflation rate.
B) permanently reduce the inflation rate as it permanently reduced the unemployment rate.
C) permanently reduce the unemployment rate if it were willing to increase the real interest rate.
D) permanently reduce the inflation rate if it were willing to decrease the real interest rate.
A
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Typically, the lower the level of income per person in a country, the lower the level of spending per person on health care. This relationship between income and spending indicates that health care is a
A) luxury. B) inferior good. C) necessity. D) normal good.
You're traveling in Ireland and are thinking about buying a new digital camera
You've decided you'd be willing to pay $125 for a new camera, but cameras in Ireland are all priced in euros. If the exchange rate is 0.85 euros per dollar, what's the highest price in euros you'd be willing to pay for a camera? A) 105 euros B) 106.25 euros C) 110.15 euros D) 147 euros